98-13525. 1998 Amendment to Cotton Board Rules and Regulations Adjusting Supplemental Assessment on Imports  

  • [Federal Register Volume 63, Number 98 (Thursday, May 21, 1998)]
    [Rules and Regulations]
    [Pages 27818-27823]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-13525]
    
    
    
    [[Page 27818]]
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 1205
    
    [CN-98-002]
    
    
    1998 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: June 22, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Norma McDill, (202) 720-2145.
    
    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 filed within 20 days from the date of 
    the entry of the 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 would be lowered, the decrease is small and will not 
    significantly affect small businesses.
        The current assessment on imported cotton is $0.012412 per kilogram 
    of imported cotton. The amended assessment is $0.011850, a decrease of 
    $0.000562 or a 4.5 percent decrease from the current assessment. From 
    January through December 1997 approximately $20 million was collected 
    at the $0.012412 per kilogram rate. Should the volume of cotton 
    products imported into the U.S. remain at the same level in 1998, one 
    could expect the decreased assessment to generate $19.1 million or a 
    4.5 percent decrease from 1997.
    
    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 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 
    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 (62 FR 46412) on September 2, 1997, for the purpose of 
    calculating supplemental assessments on imported cotton is $1.6005 per 
    kilogram. This number was calculated using the annual average price 
    received by farmers for Upland cotton during the calendar year 1996 
    which was $0.726 per pound and multiplying by the conversion factor
    
    [[Page 27819]]
    
    2.2046. Using the Average Price Received by U.S. Farmers for Upland 
    Cotton for the calendar year 1997, which is $0.675 per pound, the new 
    value of imported cotton is $1.4881 per kilogram. The amended value is 
    $0.1124 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 1997 calendar year average price received by producers for Upland 
    cotton is $0.675 per pound or $1.4881 per kg. (0.675  x  
    2.2046)=1.4881.
    Five tenths of one percent of the average price in kg. equals $0.007441 
    per kg. (1.4881  x  .005).
    
    Total Assessment
    
        The total assessment per kilogram of raw cotton is obtained by 
    adding the $1 per bale equivalent assessment of $0.004409 per kg. and 
    the supplemental assessment $0.007441 per kg. which equals $0.011850 
    per kg.
        The current assessment on imported cotton is $0.012412 per kilogram 
    of imported cotton. The amended assessment is $0.011850, a decrease of 
    $0.000562 per kilogram. This decrease reflects the decrease in the 
    Average Price of Upland Cotton Received by U.S. Farmers during the 
    period January through December 1997.
        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.
        Eight HTS numbers subject to assessment pursuant to this regulation 
    and found in the assessment table have been changed. In order to 
    maintain consistency between the HTS and the assessment table, the 
    changes to these eight numbers have been incorporated into the 
    assessment table. The last two digits of these numbers 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 each of the 
    eight numbers 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.  
    ----------------------------------------------------------------------------------------------------------------
    5208523040......................................................      5208523045          1.1455          1.3574
    5208524040......................................................      5208524045          1.1455          1.3574
    5208524060......................................................      5208524065          1.1455          1.3574
    5208592020......................................................      5208592025          1.1455          1.3574
    5208592090......................................................      5208592095          1.1455          1.3574
    5209516030......................................................      5209516035          1.1455          1.3574
    5209590020......................................................      5209590025          1.1455          1.3574
    5211590020......................................................      5211590025          0.6873          0.8145
    ----------------------------------------------------------------------------------------------------------------
    
        A proposed rule with a request for comments was published in the 
    Federal Register (63 FR 15336) on March 31, 1998. No comments were 
    received during the comment period (March 31 through April 30, 1998).
    
    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, paragraphs (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 average prices received by U.S. 
    farmers will be calculated annually. Such 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 $1.4881 per kilogram.
        (3) * * *
        (ii) * * *
    
                             Import Assessment Table                        
                               [Raw cotton fiber]                           
    ------------------------------------------------------------------------
                                                             Conv.    Cents/
                            HTS No.                          fact.     kg.  
    ------------------------------------------------------------------------
    5201000500............................................   0        1.185 
    5201001200............................................   0        1.185 
    5201001400............................................   0        1.185 
    5201001800............................................   0        1.185 
    5201002200............................................   0        1.185 
    5201002400............................................   0        1.185 
    5201002800............................................   0        1.185 
    5201003400............................................   0        1.185 
    5201003800............................................   0        1.185 
    5204110000............................................   1.1111   1.3167
    5204200000............................................   1.1111   1.3167
    5205111000............................................   1.1111   1.3167
    5205112000............................................   1.1111   1.3167
    5205121000............................................   1.1111   1.3167
    5205122000............................................   1.1111   1.3167
    5205131000............................................   1.1111   1.3167
    5205132000............................................   1.1111   1.3167
    5205141000............................................   1.1111   1.3167
    5205210020............................................   1.1111   1.3167
    5205210090............................................   1.1111   1.3167
    5205220020............................................   1.1111   1.3167
    5205220090............................................   1.1111   1.3167
    5205230020............................................   1.1111   1.3167
    5205230090............................................   1.1111   1.3167
    5205240020............................................   1.1111   1.3167
    5205240090............................................   1.1111   1.3167
    5205310000............................................   1.1111   1.3167
    5205320000............................................   1.1111   1.3167
    5205330000............................................   1.1111   1.3167
    5205340000............................................   1.1111   1.3167
    5205410020............................................   1.1111   1.3167
    
    [[Page 27820]]
    
                                                                            
    5205410090............................................   1.1111   1.3167
    5205420020............................................   1.1111   1.3167
    5205420090............................................   1.1111   1.3167
    5205440020............................................   1.1111   1.3167
    5205440090............................................   1.1111   1.3167
    5206120000............................................   0.5556   0.6584
    5206130000............................................   0.5556   0.6584
    5206140000............................................   0.5556   0.6584
    5206220000............................................   0.5556   0.6584
    5206230000............................................   0.5556   0.6584
    5206240000............................................   0.5556   0.6584
    5206310000............................................   0.5556   0.6584
    5207100000............................................   1.1111   1.3167
    5207900000............................................   0.5556   0.6584
    5208112020............................................   1.1455   1.3574
    5208112040............................................   1.1455   1.3574
    5208112090............................................   1.1455   1.3574
    5208114020............................................   1.1455   1.3574
    5208114060............................................   1.1455   1.3574
    5208114090............................................   1.1455   1.3574
    5208118090............................................   1.1455   1.3574
    5208124020............................................   1.1455   1.3574
    5208124040............................................   1.1455   1.3574
    5208124090............................................   1.1455   1.3574
    5208126020............................................   1.1455   1.3574
    5208126040............................................   1.1455   1.3574
    5208126060............................................   1.1455   1.3574
    5208126090............................................   1.1455   1.3574
    5208128020............................................   1.1455   1.3574
    5208128090............................................   1.1455   1.3574
    5208130000............................................   1.1455   1.3574
    5208192020............................................   1.1455   1.3574
    5208192090............................................   1.1455   1.3574
    5208194020............................................   1.1455   1.3574
    5208194090............................................   1.1455   1.3574
    5208196020............................................   1.1455   1.3574
    5208196090............................................   1.1455   1.3574
    5208224040............................................   1.1455   1.3574
    5208224090............................................   1.1455   1.3574
    5208226020............................................   1.1455   1.3574
    5208226060............................................   1.1455   1.3574
    5208228020............................................   1.1455   1.3574
    5208230000............................................   1.1455   1.3574
    5208292020............................................   1.1455   1.3574
    5208292090............................................   1.1455   1.3574
    5208294090............................................   1.1455   1.3574
    5208296090............................................   1.1455   1.3574
    5208298020............................................   1.1455   1.3574
    5208312000............................................   1.1455   1.3574
    5208321000............................................   1.1455   1.3574
    5208323020............................................   1.1455   1.3574
    5208323040............................................   1.1455   1.3574
    5208323090............................................   1.1455   1.3574
    5208324020............................................   1.1455   1.3574
    5208324040............................................   1.1455   1.3574
    5208325020............................................   1.1455   1.3574
    5208330000............................................   1.1455   1.3574
    5208392020............................................   1.1455   1.3574
    5208392090............................................   1.1455   1.3574
    5208394090............................................   1.1455   1.3574
    5208396090............................................   1.1455   1.3574
    5208398020............................................   1.1455   1.3574
    5208412000............................................   1.1455   1.3574
    5208416000............................................   1.1455   1.3574
    5208418000............................................   1.1455   1.3574
    5208421000............................................   1.1455   1.3574
    5208423000............................................   1.1455   1.3574
    5208424000............................................   1.1455   1.3574
    5208425000............................................   1.1455   1.3574
    5208430000............................................   1.1455   1.3574
    5208492000............................................   1.1455   1.3574
    5208494020............................................   1.1455   1.3574
    5208494090............................................   1.1455   1.3574
    5208496010............................................   1.1455   1.3574
    5208496090............................................   1.1455   1.3574
    5208498090............................................   1.1455   1.3574
    5208512000............................................   1.1455   1.3574
    5208516060............................................   1.1455   1.3574
    5208518090............................................   1.1455   1.3574
    5208523020............................................   1.1455   1.3574
    5208523045............................................   1.1455   1.3574
    5208523090............................................   1.1455   1.3574
    5208524020............................................   1.1455   1.3574
    5208524045............................................   1.1455   1.3574
    5208524065............................................   1.1455   1.3574
    5208525020............................................   1.1455   1.3574
    5208530000............................................   1.1455   1.3574
    5208592025............................................   1.1455   1.3574
    5208592095............................................   1.1455   1.3574
    5208594090............................................   1.1455   1.3574
    5208596090............................................   1.1455   1.3574
    5209110020............................................   1.1455   1.3574
    5209110035............................................   1.1455   1.3574
    5209110090............................................   1.1455   1.3574
    5209120020............................................   1.1455   1.3574
    5209120040............................................   1.1455   1.3574
    5209190020............................................   1.1455   1.3574
    5209190040............................................   1.1455   1.3574
    5209190060............................................   1.1455   1.3574
    5209190090............................................   1.1455   1.3574
    5209210090............................................   1.1455   1.3574
    5209220020............................................   1.1455   1.3574
    5209220040............................................   1.1455   1.3574
    5209290040............................................   1.1455   1.3574
    5209290090............................................   1.1455   1.3574
    5209313000............................................   1.1455   1.3574
    5209316020............................................   1.1455   1.3574
    5209316035............................................   1.1455   1.3574
    5209316050............................................   1.1455   1.3574
    5209316090............................................   1.1455   1.3574
    5209320020............................................   1.1455   1.3574
    5209320040............................................   1.1455   1.3574
    5209390020............................................   1.1455   1.3574
    5209390040............................................   1.1455   1.3574
    5209390060............................................   1.1455   1.3574
    5209390080............................................   1.1455   1.3574
    5209390090............................................   1.1455   1.3574
    5209413000............................................   1.1455   1.3574
    5209416020............................................   1.1455   1.3574
    5209416040............................................   1.1455   1.3574
    5209420020............................................   1.0309   1.2216
    5209420040............................................   1.0309   1.2216
    5209430030............................................   1.1455   1.3574
    5209430050............................................   1.1455   1.3574
    5209490020............................................   1.1455   1.3574
    5209490090............................................   1.1455   1.3574
    5209516035............................................   1.1455   1.3574
    5209516050............................................   1.1455   1.3574
    5209520020............................................   1.1455   1.3574
    5209590025............................................   1.1455   1.3574
    5209590040............................................   1.1455   1.3574
    5209590090............................................   1.1455   1.3574
    5210114020............................................   0.6873   0.8145
    5210114040............................................   0.6873   0.8145
    5210116020............................................   0.6873   0.8145
    5210116040............................................   0.6873   0.8145
    5210116060............................................   0.6873   0.8145
    5210118020............................................   0.6873   0.8145
    5210120000............................................   0.6873   0.8145
    5210192090............................................   0.6873   0.8145
    5210214040............................................   0.6873   0.8145
    5210216020............................................   0.6873   0.8145
    5210216060............................................   0.6873   0.8145
    5210218020............................................   0.6873   0.8145
    5210314020............................................   0.6873   0.8145
    5210314040............................................   0.6873   0.8145
    5210316020............................................   0.6873   0.8145
    5210318020............................................   0.6873   0.8145
    5210414000............................................   0.6873   0.8145
    5210416000............................................   0.6873   0.8145
    5210418000............................................   0.6873   0.8145
    5210498090............................................   0.6873   0.8145
    5210514040............................................   0.6873   0.8145
    5210516020............................................   0.6873   0.8145
    5210516040............................................   0.6873   0.8145
    5210516060............................................   0.6873   0.8145
    5211110090............................................   0.6873   0.8145
    5211120020............................................   0.6873   0.8145
    5211190020............................................   0.6873   0.8145
    5211190060............................................   0.6873   0.8145
    5211210025............................................   0.4165   0.4936
    5211210035............................................   0.4165   0.4936
    5211210050............................................   0.6873   0.8145
    5211290090............................................   0.6873   0.8145
    5211320020............................................   0.6873   0.8145
    5211390040............................................   0.6873   0.8145
    5211390060............................................   0.6873   0.8145
    5211490020............................................   0.6873   0.8145
    5211490090............................................   0.6873   0.8145
    5211590025............................................   0.6873   0.8145
    5212146090............................................   0.9164   1.0859
    5212156020............................................   0.9164   1.0859
    5212216090............................................   0.9164   1.0859
    5509530030............................................   0.5556   0.6584
    5509530060............................................   0.5556   0.6584
    5513110020............................................   0.4009   0.4751
    5513110040............................................   0.4009   0.4751
    5513110060............................................   0.4009   0.4751
    5513110090............................................   0.4009   0.4751
    5513120000............................................   0.4009   0.4751
    5513130020............................................   0.4009   0.4751
    5513210020............................................   0.4009   0.4751
    5513310000............................................   0.4009   0.4751
    5514120020............................................   0.4009   0.4751
    5516420060............................................   0.4009   0.4751
    5516910060............................................   0.4009   0.4751
    5516930090............................................   0.4009   0.4751
    5601210010............................................   1.1455   1.3574
    5601210090............................................   1.1455   1.3574
    5601300000............................................   1.1455   1.3574
    5602109090............................................   0.5727   0.6786
    5602290000............................................   1.1455   1.3574
    5602906000............................................   0.526    0.6233
    5604900000............................................   0.5556   0.6584
    5607902000............................................   0.8889   1.0533
    5608901000............................................   1.1111   1.3167
    5608902300............................................   1.1111   1.3167
    5609001000............................................   1.1111   1.3167
    5609004000............................................   0.5556   0.6584
    5701104000............................................   0.0556   0.0659
    5701109000............................................   0.1111   0.1317
    5701901010............................................   1.0444   1.2376
    5702109020............................................   1.1      1.3035
    5702312000............................................   0.0778   0.0922
    5702411000............................................   0.0722   0.0856
    5702412000............................................   0.0778   0.0922
    5702421000............................................   0.0778   0.0922
    
    [[Page 27821]]
    
                                                                            
    5702913000............................................   0.0889   0.1053
    5702991010............................................   1.1111   1.3167
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    [[Page 27822]]
    
                                                                            
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    6302513000............................................   0.5844   0.6925
    6302514000............................................   0.8182   0.9696
    6302600010............................................   1.1689   1.3851
    6302600020............................................   1.052    1.2466
    6302600030............................................   1.052    1.2466
    6302910005............................................   1.052    1.2466
    6302910015............................................   1.1689   1.3851
    6302910025............................................   1.052    1.2466
    
    [[Page 27823]]
    
                                                                            
    6302910035............................................   1.052    1.2466
    6302910045............................................   1.052    1.2466
    6302910050............................................   1.052    1.2466
    6302910060............................................   1.052    1.2466
    6303110000............................................   0.9448   1.1196
    6303910000............................................   0.6429   0.7618
    6304111000............................................   1.0629   1.2595
    6304190500............................................   1.052    1.2466
    6304191000............................................   1.1689   1.3851
    6304191500............................................   0.4091   0.4848
    6304192000............................................   0.4091   0.4848
    6304910020............................................   0.9351   1.1081
    6304920000............................................   0.9351   1.1081
    6505901540............................................   1.181    1.3995
    6505902060............................................   0.9935   1.1773
    6505902545............................................   0.5844   0.6925
    ------------------------------------------------------------------------
    
    * * * * *
        Dated: May 15, 1998.
    Mary E. Atienza,
    Deputy Administrator, Cotton Programs.
    [FR Doc. 98-13525 Filed 5-20-98; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Published:
05/21/1998
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
98-13525
Dates:
June 22, 1998.
Pages:
27818-27823 (6 pages)
Docket Numbers:
CN-98-002
PDF File:
98-13525.pdf
CFR: (1)
7 CFR 1205.510