[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