95-10950. 1995 Proposed Amendment to Cotton Board Rules and Regulations Adjusting Supplemental Assessment on Imports  

  • [Federal Register Volume 60, Number 86 (Thursday, May 4, 1995)]
    [Proposed Rules]
    [Pages 21999-22010]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-10950]
    
    
    
    ========================================================================
    Proposed Rules
                                                    Federal Register
    ________________________________________________________________________
    
    This section of the FEDERAL REGISTER contains notices to the public of 
    the proposed issuance of rules and regulations. The purpose of these 
    notices is to give interested persons an opportunity to participate in 
    the rule making prior to the adoption of the final rules.
    
    ========================================================================
    
    
    Federal Register / Vol. 60, No. 86 / Thursday, May 4, 1995 / Proposed 
    Rules
    
    [[Page 21999]]
    
    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 1205
    
    [CN-95-002]
    
    
    1995 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 proposes to amend the 
    Cotton Board Rules and Regulations by raising the value assigned to 
    imported cotton for the purpose of calculating supplemental assessments 
    collected for use by the Cotton Research and Promotion Program. The 
    proposed value reflects the 12-month average price received by U.S. 
    farmers for Upland cotton for calendar year 1994.
    
    DATES: Comments must be received by June 5, 1995.
    
    ADDRESSES: Interested persons are invited to submit written comments 
    concerning this proposed rule to Craig Shackelford, Chief, Research and 
    Promotion Staff, Cotton Division, AMS, USDA, P.O. Box 96456, Room 2641-
    S, Washington, D.C. 20090-6456, or by facsimile (202) 690-1718. Three 
    copies of all written materials shall be submitted, and they will be 
    made available for public inspection in the office of the Cotton 
    Division, Washington, D.C. during regular business hours. All comments 
    should reference docket number, date, and page number of this issue of 
    the Federal Register.
    
    FOR FURTHER INFORMATION CONTACT: Craig Shackelford, (202) 720-2259.
    
    SUPPLEMENTARY INFORMATION: 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 12778, 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 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.
        The Administrator, Agricultural Marketing Service (AMS) has 
    considered the economic impact of this action on small entities 
    pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
        There are an estimated 10,000 importers who are presently subject 
    to rules and regulations issued pursuant to the Cotton Research and 
    Promotion Order. This 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 rule would raise the assessments paid by the 
    importers under the Cotton Research and Promotion Order. Even though 
    the assessment would be raised, the increase is small and would not 
    significantly affect small businesses. The AMS Administrator therefore 
    has certified that this rule 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) of 1980 (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.
        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. 
    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.
        This proposed rule would increase 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.
        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 adopted the use 
    of the calendar year average price received by U.S. farmers for Upland 
    cotton as a benchmark for the value of domestically produced cotton. 
    The source for this 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 
    [[Page 22000]] that approximates assessments paid on domestically 
    produced cotton.
        The current value of imported cotton as published in the Federal 
    Register (59 FR 59110) for the purpose of calculating supplemental 
    assessments on imported cotton is $1.197 per kilogram. Using the 
    Average Price Received by U.S. farmers for Upland cotton for the 
    calendar year 1994, which is $0.683 per pound, the new value of 
    imported cotton would be $1.5057 per kilogram.
        An example of the 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 Sec. 0.002000 per pound (1  500) 
    or $0.004409 per kg. (1  226.8).
        Supplemental assessment of 5/10 of one percent of the value of the 
    cotton converted to kilograms
    
    Average price received $0.683 per pound or $1.5057 per kg. (0.683  x  
    2.2046) = 1.5057.
    
    5/10 of one percent of the average price in kg. equals $0.007529 per 
    kg. (1.5057  x  .005)
    
        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 Sec. 0.007529 per kg. which equals 
    $0.011938 per kg.
        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, these figures have been revised. These figures indicate 
    the total assessment per kilogram due for each Harmonized Tariff 
    Schedule (HTS) number subject to assessment.
        As a result of implementation of national trade agreements, several 
    changes in the harmonized tariff schedule numbering have occurred. 
    Modifications to the harmonized tariff schedule were published in the 
    January 4, 1995, Federal Register at 60 FR 1007 (Proclamation 6763 of 
    December 23, 1994, by the President of the United States of America). 
    Therefore, revisions to the Import Assessment Table used in the Cotton 
    Research and Promotion program were necessary. These changes are as 
    follows:
        Deleted numbers:
    5201001000
    5201002000
    5702422090
    5702491010
    5702494090
    6002920000
    6116926020
    6116926030
    6116926040
    6116929000
    6116939010
    6208920010
    6208920030
    6211320080
    6211420050
    6211420080
    6211430090
    6216001220
    6216003910
    6216003920
    6303920000
    
        New numbers:
    5201000000
    5201000500
    5201001200
    5201001400
    5201001800
    5201002200
    5201002400
    5201002800
    5201003400
    5201003800
    5701104000
    5701109000
    5801210000
    5804291000
    5808107000
    6002921000
    6110909022
    6110909024
    6110909030
    6110909040
    6110909042
    6115199010
    6117809010
    6117809040
    6201999060
    6203399060
    6203498045
    6201198090
    6207199010
    6210109010
    6210403000
    6210405020
    6211118010
    6211118020
    6212105020
    6212109010
    6212109020
    6217109010
    6217109030
    6302215010
    6302215020
    6302217010
    6302219010
    6302217020
    6302219020
    6302217050
    6302219050
    6302313010
    6302313050
    6302315050
    6302317010
    6302319010
    6302317020
    6302319020
    6302317040
    6302319040
    6302317050
    6302319050
    
    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 Section 1205.510(b) (2) and (3) 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 $1.5057 per kilogram.
        (3) The following table contains Harmonized Tariff Schedule (HTS) 
    classification numbers and corresponding conversion factors and 
    assessments. The left column of the following table indicates the HTS 
    classifications of imported cotton and cotton-containing products 
    subject to assessment. The center column indicates the conversion 
    factor for determining the raw fiber content for each kilogram of the 
    HTS. HTS numbers for raw cotton have no conversion factor in the table. 
    The right column indicates the total assessment per kilogram of the 
    article assessed.
        (i) Any line item entry of cotton appearing on Customs entry 
    documentation in which the value of the cotton contained therein is 
    less than $220.99 will not be subject to assessments as described in 
    this section.
    
    [[Page 22001]]
    
        (ii) In the event that any HTS number subject to assessment is 
    changed and such change is merely a replacement of a previous number 
    and has no impact on the physical properties, description, or cotton 
    content of the product involved, assessments will continue to be 
    collected based on the new number.
    
                             Import Assessment Table                        
                               [Raw Cotton Fiber]                           
    ------------------------------------------------------------------------
                                                   Conversion               
                 HTS classification                  factor       Cents/kg. 
    ------------------------------------------------------------------------
    5201000000..................................        0.0000        1.1938
    5201000500..................................        0.0000        1.1938
    5201001200..................................        0.0000        1.1938
    5201001400..................................        0.0000        1.1938
    5201001800..................................        0.0000        1.1938
    5201002200..................................        0.0000        1.1938
    5201002400..................................        0.0000        1.1938
    5201002800..................................        0.0000        1.1938
    5201003400..................................        0.0000        1.1938
    5201003800..................................        0.0000        1.1938
    5204110000..................................        1.1111        1.3264
    5204200000..................................        1.1111        1.3264
    5205111000..................................        1.1111        1.3264
    5205112000..................................        1.1111        1.3264
    5205121000..................................        1.1111        1.3264
    5205122000..................................        1.1111        1.3264
    5205131000..................................        1.1111        1.3264
    5205132000..................................        1.1111        1.3264
    5205141000..................................        1.1111        1.3264
    5205210000..................................        1.1111        1.3264
    5205220000..................................        1.1111        1.3264
    5205230000..................................        1.1111        1.3264
    5205240000..................................        1.1111        1.3264
    5205250000..................................        1.1111        1.3264
    5205310000..................................        1.1111        1.3264
    5205320000..................................        1.1111        1.3264
    5205330000..................................        1.1111        1.3264
    5205340000..................................        1.1111        1.3264
    5205410000..................................        1.1111        1.3264
    5205420000..................................        1.1111        1.3264
    5205440000..................................        1.1111        1.3264
    5205450000..................................        1.1111        1.3264
    5206120000..................................        0.5556        0.6633
    5206130000..................................        0.5556        0.6633
    5206140000..................................        0.5556        0.6633
    5206220000..................................        0.5556        0.6633
    5206230000..................................        0.5556        0.6633
    5206240000..................................        0.5556        0.6633
    5206310000..................................        0.5556        0.6633
    5207100000..................................        1.1111        1.3264
    5207900000..................................        0.5556        0.6633
    5208112020..................................        1.1455        1.3675
    5208112040..................................        1.1455        1.3675
    5208112090..................................        1.1455        1.3675
    5208114020..................................        1.1455        1.3675
    5208114060..................................        1.1455        1.3675
    5208114090..................................        1.1455        1.3675
    5208118090..................................        1.1455        1.3675
    5208124020..................................        1.1455        1.3675
    5208124040..................................        1.1455        1.3675
    5208124090..................................        1.1455        1.3675
    5208126020..................................        1.1455        1.3675
    5208126040..................................        1.1455        1.3675
    5208126060..................................        1.1455        1.3675
    5208126090..................................        1.1455        1.3675
    5208128020..................................        1.1455        1.3675
    5208128090..................................        1.1455        1.3675
    5208130000..................................        1.1455        1.3675
    5208192020..................................        1.1455        1.3675
    5208192090..................................        1.1455        1.3675
    5208194020..................................        1.1455        1.3675
    5208194090..................................        1.1455        1.3675
    5208196020..................................        1.1455        1.3675
    5208196090..................................        1.1455        1.3675
    5208224040..................................        1.1455        1.3675 
    [[Page 22002]]
                                                                            
    5208224090..................................        1.1455        1.3675
    5208226020..................................        1.1455        1.3675
    5208226060..................................        1.1455        1.3675
    5208228020..................................        1.1455        1.3675
    5208230000..................................        1.1455        1.3675
    5208292020..................................        1.1455        1.3675
    5208292090..................................        1.1455        1.3675
    5208294090..................................        1.1455        1.3675
    5208296090..................................        1.1455        1.3675
    5208298020..................................        1.1455        1.3675
    5208312000..................................        1.1455        1.3675
    5208321000..................................        1.1455        1.3675
    5208323020..................................        1.1455        1.3675
    5208323040..................................        1.1455        1.3675
    5208323090..................................        1.1455        1.3675
    5208324020..................................        1.1455        1.3675
    5208324040..................................        1.1455        1.3675
    5208325020..................................        1.1455        1.3675
    5208330000..................................        1.1455        1.3675
    5208392020..................................        1.1455        1.3675
    5208392090..................................        1.1455        1.3675
    5208394090..................................        1.1455        1.3675
    5208396090..................................        1.1455        1.3675
    5208398020..................................        1.1455        1.3675
    5208412000..................................        1.1455        1.3675
    5208416000..................................        1.1455        1.3675
    5208418000..................................        1.1455        1.3675
    5208421000..................................        1.1455        1.3675
    5208423000..................................        1.1455        1.3675
    5208424000..................................        1.1455        1.3675
    5208425000..................................        1.1455        1.3675
    5208430000..................................        1.1455        1.3675
    5208492000..................................        1.1455        1.3675
    5208494020..................................        1.1455        1.3675
    5208494090..................................        1.1455        1.3675
    5208496010..................................        1.1455        1.3675
    5208496090..................................        1.1455        1.3675
    5208498090..................................        1.1455        1.3675
    5208512000..................................        1.1455        1.3675
    5208516060..................................        1.1455        1.3675
    5208518090..................................        1.1455        1.3675
    5208523020..................................        1.1455        1.3675
    5208523040..................................        1.1455        1.3675
    5208523090..................................        1.1455        1.3675
    5208524020..................................        1.1455        1.3675
    5208524040..................................        1.1455        1.3675
    5208524060..................................        1.1455        1.3675
    5208525020..................................        1.1455        1.3675
    5208530000..................................        1.1455        1.3675
    5208592020..................................        1.1455        1.3675
    5208592090..................................        1.1455        1.3675
    5208594090..................................        1.1455        1.3675
    5208596090..................................        1.1455        1.3675
    5209110020..................................        1.1455        1.3675
    5209110030..................................        1.1455        1.3675
    5209110090..................................        1.1455        1.3675
    5209120020..................................        1.1455        1.3675
    5209120040..................................        1.1455        1.3675
    5209190020..................................        1.1455        1.3675
    5209190040..................................        1.1455        1.3675
    5209190060..................................        1.1455        1.3675
    5209190090..................................        1.1455        1.3675
    5209210090..................................        1.1455        1.3675
    5209220020..................................        1.1455        1.3675
    5209220040..................................        1.1455        1.3675
    5209290040..................................        1.1455        1.3675
    5209290090..................................        1.1455        1.3675
    5209313000..................................        1.1455        1.3675
    5209316020..................................        1.1455        1.3675
    5209316030..................................        1.1455        1.3675
    [[Page 22003]]
                                                                            
    5209316050..................................        1.1455        1.3675
    5209316090..................................        1.1455        1.3675
    5209320020..................................        1.1455        1.3675
    5209320040..................................        1.1455        1.3675
    5209390020..................................        1.1455        1.3675
    5209390040..................................        1.1455        1.3675
    5209390060..................................        1.1455        1.3675
    5209390080..................................        1.1455        1.3675
    5209390090..................................        1.1455        1.3675
    5209413000..................................        1.1455        1.3675
    5209416020..................................        1.1455        1.3675
    5209416040..................................        1.1455        1.3675
    5209420020..................................        1.0309        1.2307
    5209420040..................................        1.0309        1.2307
    5209430020..................................        1.1455        1.3675
    5209430040..................................        1.1455        1.3675
    5209490020..................................        1.1455        1.3675
    5209490090..................................        1.1455        1.3675
    5209516030..................................        1.1455        1.3675
    5209516050..................................        1.1455        1.3675
    5209520020..................................        1.1455        1.3675
    5209590020..................................        1.1455        1.3675
    5209590040..................................        1.1455        1.3675
    5209590090..................................        1.1455        1.3675
    5210114020..................................        0.6873        0.8205
    5210114040..................................        0.6873        0.8205
    5210116020..................................        0.6873        0.8205
    5210116040..................................        0.6873        0.8205
    5210116060..................................        0.6873        0.8205
    5210118020..................................        0.6873        0.8205
    5210120000..................................        0.6873        0.8205
    5210192090..................................        0.6873        0.8205
    5210214040..................................        0.6873        0.8205
    5210216020..................................        0.6873        0.8205
    5210216060..................................        0.6873        0.8205
    5210218020..................................        0.6873        0.8205
    5210314020..................................        0.6873        0.8205
    5210314040..................................        0.6873        0.8205
    5210316020..................................        0.6873        0.8205
    5210318020..................................        0.6873        0.8205
    5210414000..................................        0.6873        0.8205
    5210416000..................................        0.6873        0.8205
    5210418000..................................        0.6873        0.8205
    5210498090..................................        0.6873        0.8205
    5210514040..................................        0.6873        0.8205
    5210516020..................................        0.6873        0.8205
    5210516040..................................        0.6873        0.8205
    5210516060..................................        0.6873        0.8205
    5211110090..................................        0.6873        0.8205
    5211120020..................................        0.6873        0.8205
    5211190020..................................        0.6873        0.8205
    5211190060..................................        0.6873        0.8205
    5211210030..................................        0.4165        0.4972
    5211210050..................................        0.6873        0.8205
    5211290090..................................        0.6873        0.8205
    5211320020..................................        0.6873        0.8205
    5211390040..................................        0.6873        0.8205
    5211390060..................................        0.6873        0.8205
    5211490020..................................        0.6873        0.8205
    5211490090..................................        0.6873        0.8205
    5211590020..................................        0.6873        0.8205
    5212146090..................................        0.9164        1.094 
    5212156020..................................        0.9164        1.094 
    5212216090..................................        0.9164        1.094 
    5309214010..................................        0.2864        0.3419
    5309214090..................................        0.2864        0.3419
    5309294010..................................        0.2864        0.3419
    5311004000..................................        0.9164        1.094 
    5407810010..................................        0.5727        0.6837
    5407810030..................................        0.5727        0.6837
    5407912020..................................        0.4009        0.4786
    [[Page 22004]]
                                                                            
    5408312020..................................        0.4009        0.4786
    5408329020..................................        0.4009        0.4786
    5408349020..................................        0.4009        0.4786
    5408349090..................................        0.4009        0.4786
    5509530030..................................        0.5556        0.6633
    5509530060..................................        0.5556        0.6633
    5513110020..................................        0.4009        0.4786
    5513110040..................................        0.4009        0.4786
    5513110060..................................        0.4009        0.4786
    5513110090..................................        0.4009        0.4786
    5513120000..................................        0.4009        0.4786
    5513130020..................................        0.4009        0.4786
    5513210020..................................        0.4009        0.4786
    5513310000..................................        0.4009        0.4786
    5514120020..................................        0.4009        0.4786
    5516420060..................................        0.4009        0.4786
    5516910060..................................        0.4009        0.4786
    5516930090..................................        0.4009        0.4786
    5601210010..................................        1.1455        1.3675
    5601210090..................................        1.1455        1.3675
    5601300000..................................        1.1455        1.3675
    5602109090..................................        0.5727        0.6837
    5602290000..................................        1.1455        1.3675
    5602906000..................................        0.526         0.6279
    5604900000..................................        0.5556        0.6633
    5607902000..................................        0.8889        1.0612
    5608901000..................................        1.1111        1.3264
    5608902300..................................        1.1111        1.3264
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    6304111000..................................        1.0629        1.2689
    6304190500..................................        1.052         1.2559
    6304191000..................................        1.1689        1.3954
    6304191500..................................        0.4091        0.4884
    6304192000..................................        0.4091        0.4884
    6304910020..................................        0.9351        1.1163
    6304920000..................................        0.9351        1.1163
    6505901540..................................        1.181         1.4099
    6505902060..................................        0.9935        1.186 
    6505902545..................................        0.5844        0.6977
    ------------------------------------------------------------------------
    
    * * * * *
        Dated: April 27, 1995.
    Lon Hatamiya,
    Administrator.
    [FR Doc. 95-10950 Filed 5-3-95; 8:45 am]
    BILLING CODE 3410-02-P
    
    

Document Information

Published:
05/04/1995
Department:
Agricultural Marketing Service
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
95-10950
Dates:
Comments must be received by June 5, 1995.
Pages:
21999-22010 (12 pages)
Docket Numbers:
CN-95-002
PDF File:
95-10950.pdf
CFR: (1)
7 CFR 1205.510