[Federal Register Volume 59, Number 154 (Thursday, August 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19630]
[[Page Unknown]]
[Federal Register: August 11, 1994]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1435
RIN 0560-AC91
Sugar Marketing Assessments
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The proposed rule on sugar marketing assessments, published
December 31, 1992, (57 FR 62486) is adopted as final, with certain
changes as required by amendments made by the Omnibus Budget
Reconciliation Act of 1993 (Reconciliation Act) to the Agricultural Act
of 1949 (1949 Act). This final rule reflects changes required by
amendments to the statutory provisions which authorize the assessments,
clarifies the regulations, and enhances the collection of the
assessments.
EFFECTIVE DATE: September 9, 1994.
FOR FURTHER INFORMATION CONTACT: Robert D. Barry, Director, Sweeteners
Analysis Division, Agricultural Stabilization and Conservation Service,
room 3739, South Agriculture Building, U.S. Department of Agriculture,
P.O. Box 2415, Washington, DC 20013-2415; telephone: 202-720-3391.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order
12866. OMB has determined that this rule is significant.
Regulatory Flexibility Act
The Executive Vice President, Commodity Credit Corporation (CCC),
certifies that this final rule will not have a significant economic
impact on a substantial number of small entities. Consequently, a
Regulatory Flexibility Analysis is not required under the provisions of
the Regulatory Flexibility Act.
Executive Order 12778
This final rule has been reviewed in accordance with Executive
Order 12778. The provisions of this final rule do not preempt State law
to the extent such laws are not inconsistent with the provisions of
this final rule. This final rule is not retroactive. Before any action
may be brought regarding the provisions of this final rule, the
administrative appeal rights set forth at 7 CFR part 780 must be
exhausted.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will not have a significant impact on the quality of the human
environment. Therefore, neither an Environmental Assessment nor an
Environmental Impact Statement is needed for this final rule.
Paperwork Reduction Act
This final rule does not impose new information collection or
recordkeeping requirements on the public. The information collection
requirements of the current rule at 7 CFR Part 1435 have been approved
through July 31, 1995, by the Office of Management and Budget (OMB)
under the provisions of the Paperwork Reduction Act of 1980 (44 U.S.C.
Chapter 35) and has been assigned OMB No. 0560-0138.
Executive Order 12372
The program covered by this final rule is not subject to the
provisions of Executive Order 12372 which requires intergovernmental
consultation with State and local officials. See the notice related to
7 CFR part 3015, subpart V, published at 48 FR 29115 (June 24, 1983).
Background
Section 1105(c) of the Omnibus Budget Reconciliation Act of 1990
amended section 206(i) of the 1949 Act to provide that, only for the
1991 through 1995 crops of sugarcane and sugar beets, the first
processor of sugarcane or sugar beets shall remit to CCC a
nonrefundable marketing assessment in an amount equal to 0.18 cents per
pound of raw cane sugar processed by the processor from domestically
produced sugarcane and an amount equal to 0.193 cents per pound of beet
sugar processed by the processor from domestically produced sugar
beets. The amendment also provided for the imposition of civil
penalties if any persons were to fail to remit such assessments or to
comply with such requirements for recordkeeping which are required to
carry out section 206(i).
Because the 1991 crop year was to begin on July 1, 1991, an interim
rule was promulgated to implement these assessments, which became
effective on June 19, 1991 (56 FR 28034). Based on consideration of the
comments received, a final rule was promulgated effective on November
1, 1991 (56 FR 55606).
Subsequently, the Food, Agriculture, Conservation, and Trade Act
Amendments of 1991 (the 1991 Act, also known as the technical
corrections to the 1990 Farm Act), which became effective on December
13, 1991, amended section 206(i) of the 1949 Act, to:
(1) Provide that the assessments would apply only for marketings of
raw cane sugar and beet sugar during the 1992 through 1996 fiscal
years,
(2) Specify the timing of collections of marketing assessments, and
(3) Clarify that the assessments would apply to sugar derived from
sugar beet molasses or sugarcane molasses.
A proposed rule was promulgated on December 31, 1992 (57 FR 62486)
to reflect the statutory amendments enacted in the 1991 Act and, at the
same time, to ease the regulatory burden of the assessments and to
further clarify certain provisions of the regulations.
Section 1107 (a) of the Reconciliation Act (Pub. L. 103-66), which
became effective on August 10, 1993, amended section 206 of the 1949
Act, to provide that:
(1) Assessments would apply to the marketings of raw cane sugar and
beet sugar for two additional fiscal years, through fiscal 1998,
(2) The assessments for fiscal years 1995 through 1998 would be 10
percent higher per pound of sugar than assessments for fiscal years
1992 through 1994, and
(3) Processors who knowingly market sugar in excess of the
allocation of the processor shall pay an assessment which is double the
applicable assessment required per pound of sugar marketed.
In this final rule, CCC is adding amendments to the regulations to
reflect the statutory amendments enacted in the Reconciliation Act.
Summary of Comments
One national and two State sugar associations commented on the
proposed rule. All three were critical of Sec. 1435.203(e) which
requires remitting the marketing assessment fee by October 30 on the
quantity of sugar produced during the preceding fiscal year but not
marketed by September 30. Even though such sugar would not be subject
to a second assessment when it is marketed, the payment on sugar
inventories was considered an unfair burden on the processors. Two of
the commenters recommended that the marketing assessment should be
imposed only when the sugar is actually marketed, except that in the
last fiscal year (fiscal 1998), any (1991- through 1997-crop) sugar not
marketed by September 30, would be subject to the marketing assessment
fee. Regardless of the merits of the recommendation, CCC is required by
statute to implement Sec. 1435.203(e) as written in the proposed rule
and therefore adopts the section as final. The third commenter agrees
that current statutes uphold the need for Sec. 1435.203(e), but asks
CCC to acknowledge the inequity and thereby pave the way for remedial
legislation.
One commenter contended that Hawaiian producers should be permitted
credit for assessments paid on sugar processed during July 1 through
September 30, 1991 ``as was done for beet processors.'' CCC addressed
this issue extensively in the proposed rule and maintains that the
assessment rules were applied consistently among all processors, both
beet and cane.
Thus, CCC adopts the provisions as provided in the proposed rule,
except for revisions to Secs. 1435.200, 1435.202, and 1435.204 to
reflect statutory requirements of Sec. 1107 (a) of the Reconciliation
Act.
List of Subjects in 7 CFR Part 1435
Loan programs/agriculture, Marketing allotments, Price support
programs, Reporting and recordkeeping requirements, Sugar.
Accordingly, 7 CFR part 1435 is amended as follows:
PART 1435--SUGAR
1. The authority citation for 7 CFR part 1435 continues to read as
follows:
Authority: 7 U.S.C. 1359aa-1359jj, 1421, 1423, 1446g; 15 U.S.C.
714b and 714c.
2. Subpart--Sugar Marketing Assessments, consisting of
Secs. 1435.200-1435.206, is revised to read as follows:
Subpart--Sugar Marketing Assessments
Sec.
1435.200 General statement.
1435.201 Definitions.
1435.202 Amount of the marketing assessment.
1435.203 Remittance.
1435.204 Civil penalties and interest.
1435.205 Maintenance and inspection of records.
1435.206 Refunds.
Subpart--Sugar Marketing Assessments
Sec. 1435.200 General statement.
(a) This subpart sets forth the terms and conditions for the
payment to CCC of marketing assessments for beet sugar and raw cane
sugar produced during the 1991 through 1997 crop years and marketed
during the 1992 through 1998 fiscal years.
(b) The marketing assessment applies to: (1) The marketing by first
processors of all raw cane sugar produced from the 1991 through 1997
crops of domestically produced sugarcane or sugarcane molasses and
marketed during the 1992 through 1998 fiscal years; and
(2) The marketing by first processors of all beet sugar produced
from the 1991 through 1997 crops of domestically produced sugar beets
or sugar beet molasses and marketed during the 1992 through 1998 fiscal
years.
(c) All first processors of sugar beets and sugarcane are
responsible to remit the marketing assessments.
(d) The marketing assessments shall be due and payable to CCC by
the thirtieth calendar day following the end of the month in which the
beet sugar or raw cane was marketed.
Sec. 1435.201 Definitions.
Beet sugar means sugar, whether or not principally of crystalline
structure, which is processed directly or indirectly from domestically
produced sugar beets (including sugar produced from sugar beet
molasses).
Crop year and crop shall have the same meanings as are ascribed to
such terms in Sec. 1435.3 of this part, with the customary allowance
for a continuous harvest as provided for in Sec. 1435.5(a)(2) of this
part. In addition, beet sugar or raw cane sugar processed from molasses
or thick juice produced from domestically produced sugar beets or
sugarcane shall be considered to have been produced during the crop
year in which such sugar beets or sugarcane was harvested.
First processor means a person who commercially produces beet sugar
or raw cane sugar, directly or indirectly, from domestically produced
sugar beets or sugarcane, or from molasses or thick juice derived from
domestically produced sugar beets or sugarcane.
Fiscal year means CCC's fiscal year which runs from October 1 to
September 30.
Integrated processor-refiner means a first processor of raw cane
sugar who also refines raw cane sugar into refined sugar.
Market or marketing means the sale or disposition of raw cane sugar
or beet sugar in commerce in the 50 United States, the several
territories, the District of Columbia, and Puerto Rico, including, with
respect to any integrated processor-refiner, the movement of raw cane
sugar into the refining process. For purposes of this subpart, the
forfeiture to the CCC of raw cane sugar or beet sugar used as
collateral for a price support loan is also considered a marketing.
Raw cane sugar means any sugar, cane syrup or edible molasses,
whether or not principally of crystalline structure, processed from
domestically produced sugarcane or sugarcane molasses.
Raw value shall have the same meaning as is ascribed to such term
in Sec. 1435.401 of this part.
Sec. 1435.202 Amount of the marketing assessment.
(a) The amount of the beet sugar marketing assessment to be
remitted shall be the sum determined by multiplying the number of
pounds of beet sugar marketed in a calendar month by the assessment
rate. The assessment rate for fiscal years 1992 through 1994 shall be
1.0722 percent of the loan level for raw cane sugar, but not more than
0.193 cents per pound. For marketings during each of fiscal years 1995
through 1998, the assessment rate per pound of beet sugar shall be
1.1794 percent of the loan level established for raw cane sugar, but
not more than 0.2123 cents per pound of beet sugar.
(b) The amount of the marketing assessment on raw cane sugar to be
remitted to CCC shall be the sum determined by multiplying the number
of pounds, raw value, of raw cane sugar marketed, or estimated to be
marketed in accordance with Sec. 1435.203(c)(1) of this subpart, in a
calendar month by the assessment rate. The rate for fiscal years 1992
through 1994 shall be 1.0 percent of the loan level for raw cane sugar,
but not more than 0.18 cents per pound. For marketings during each of
fiscal years 1995 through 1998, the assessment rate per pound of raw
cane sugar shall be 1.1 percent of the loan level established for raw
cane sugar but not more than 0.198 cents per pound of raw cane sugar.
Sec. 1435.203 Remittance.
(a)(1) First processors shall remit marketing assessments to CCC by
the thirtieth calendar day following the end of the month in which the
beet sugar or cane sugar subject to the assessment was marketed.
(2) Mailed remittances will be considered timely if they are
postmarked not later than the thirtieth calendar day following the
month in which the beet sugar or cane sugar subject to the assessment
was marketed.
(3) Electronic remittances must be received by CCC by the thirtieth
calendar day following the month in which the beet sugar or cane sugar
subject to the assessment was marketed.
(4) Any processor who fails to file a remittance by the date on
which it is due shall be assessed a civil penalty and interest in
accordance with Sec. 1435.204 of this subpart.
(b)(1) First processors shall prepare and submit a fully and
accurately completed form CCC-80 each month that shows the quantity of:
(i) Beet sugar marketed during the previous calendar month, and
(ii) Raw cane sugar, raw value, marketed during the previous
calendar month.
(2) First processors who do not operate on a calendar month basis
may pay their assessments based on marketings that include several
extra days or fewer days than the calendar month reporting period,
consistent with the processor's standard accounting months. However:
(i) Assessments must be paid on all marketings of specific crop
year sugar in the fiscal year it is due, and
(ii) The marketing assessments must be remitted monthly and by the
dates specified in paragraph (a) of this section.
(3) The entire assessment that is due and payable shall be remitted
with the Form CCC-80.
(c)(1) If, when a raw sugar assessment is due and payable, the
first processor cannot determine the exact raw value of such sugar, an
estimate of raw value based on the recent experience of the processor
shall be made and the assessment submitted on the estimated quantity.
(2) Whenever an assessment is based on an estimate of raw value
pursuant to paragraph (c)(1) of this section, any necessary adjustments
to the quantity of raw sugar subject to the assessment shall be made by
filing a corrected CCC-80 no later than 30 calendar days after the last
day of the month in which the estimated assessment was paid. If,
according to the corrected CCC-80:
(i) The assessment was underpaid, the first processor shall remit
the additional assessment due with the corrected CCC-80, and
(ii) If the assessment was overpaid, the first processor shall
subtract the overpayment from any assessment due at the time the
corrected CCC-80 is filed, or if none is due at that time, from the
assessment next due.
(d) Any first processor, who paid an assessment on beet sugar or
raw cane sugar processed during the first three months of the 1991 crop
year (July 1 through September 30, 1991) and then paid another
assessment upon the marketing of the same sugar after September 30,
1991, may receive a credit for any assessment paid on such sugar prior
to fiscal year 1992. The credits will be handled by procedures to be
developed by the Controller, CCC.
(e) By October 30 of each year, first processors shall determine
the quantity of beet sugar or raw cane sugar on hand that was produced
during the preceding fiscal year but not marketed by September 30 of
such preceding fiscal year and shall remit a marketing assessment to
CCC as if the sugar had been marketed in September of such preceding
fiscal year. Such sugar shall not be subject to a second assessment
when it is marketed.
(f) First processors shall send remittances and CCC-80 forms as
specified by CCC.
Sec. 1435.204 Civil penalties and interest.
(a) A first processor shall be liable for a civil penalty of up to
100 percent of the relevant national average price-support loan rate
times the quantity of raw cane sugar or beet sugar involved in the
violation if the processor:
(1) Fails to remit, on a timely basis, the entire amount of any
marketing assessment in accordance with this subpart;
(2) Fails to submit form CCC-80 fully and accurately completed; or
(3) Fails to maintain and permit inspection of records as required
by Sec. 1435.205 of this subpart.
(b) Also, a processor who knowingly markets sugar in excess of the
allocated allotment of the processor under section 359d of the
Agricultural Adjustment Act of 1938 shall pay an assessment in an
amount that is double the applicable assessment required under
Sec. 1435.202 of this subpart.
(c) In addition to any civil penalty assessed in accordance with
paragraphs (a) and (b) of this section, interest on unpaid assessments
or deficiencies in assessments paid shall be due and payable at the
rate specified in part 1403 of this chapter, beginning on the first day
of the month after the marketing assessment was due in accordance with
Sec. 1435.203 of this subpart. Such interest shall continue to accrue
until such amount is paid. However, if full payment of an assessment is
received within 30 calendar days of the date on which the assessment
was due, no interest shall apply.
(d) The Controller, CCC, shall assess civil penalties and interest.
(e) Affected first processors may appeal civil penalties by filing
a notice of appeal within 15 calendar days of receipt of certified
written notification by the Controller, CCC, of such assessment of
civil penalties. Such notice of appeal shall be sent to the Director,
National Appeals Division, ASCS, P.O. Box 2415, Washington, DC 20013-
2415.
Sec. 1435.205 Maintenance and inspection of records.
Representatives of CCC shall have the right to have access to the
premises of the first processor in order to inspect, examine, and make
copies of the books, records, accounts, and other data as are deemed
necessary by CCC or CCC's agents to verify compliance with the
requirements of this subpart. Such books, records, accounts, and other
written data shall be retained by the first processor for not less than
three years from the date the remittance is made to CCC.
Sec. 1435.206 Refunds.
Marketing assessments are nonrefundable. However, upon presentation
of evidence acceptable to the Controller, CCC, adjustments to an
assessment may be made by CCC to reflect the actual marketings of beet
sugar or raw cane sugar, or a first processor may adjust the amount of
the assessment due in accordance with Sec. 1435.203 of this subpart.
Signed at Washington, DC, on July 20, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-19630 Filed 8-10-94; 8:45 am]
BILLING CODE 3410-05-P