[Federal Register Volume 61, Number 60 (Wednesday, March 27, 1996)]
[Proposed Rules]
[Pages 13463-13464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7441]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1240

[AMS-FV-96-701.PR]


Honey Research, Promotion, and Consumer Information Order--
Amendment of the Rules and Regulations To Add HTS Code for Flavored 
Honey

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would add a new Harmonized Tariff Schedule 
(HTS) code number for imported flavored honey to the rules and 
regulations issued under the Honey Research, Promotion, and Consumer 
Information Order to provide authority for the U.S. Customs Service to 
collect an assessment on all imported, flavored honey.

DATES: Comments must be received by April 26, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to: Research and Promotion Branch, Fruit

[[Page 13464]]
and Vegetable Division, Agricultural Marketing Service (AMS), USDA, 
P.O. Box 96456, Room 2535-S, Washington, DC 20090-6456; fax (202) 205-
2800. Three copies of all written material should be submitted, and 
they will be made available for public inspection at the Research and 
Promotion Branch during regular business hours. All comments should 
reference the docket number and the date and page number of this issue 
of the Federal Register.

FOR FURTHER INFORMATION CONTACT: Sonia N. Jimenez, Research and 
Promotion Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 
96456, Room 2535-So., Washington, D.C. 20090-6456; telephone (202) 720-
9915.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Honey 
Research, Promotion, and Consumer Information Act, as amended [104 
Stat. 3904, 7 U.S.C. 4601 et seq.], hereinafter referred to as the Act.
    This proposed rule has been issued in conformance with Executive 
Order 12866.
    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 10 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, any provision of such order, or any obligation 
imposed in connection with such order is not in accordance with law; 
and requesting a modification of the order or an exemption from the 
order. Such person is afforded the opportunity for a hearing on the 
petition. After the hearing, the Secretary would rule in the petition. 
The Act provides that the district court of the United States in any 
district in which such person is an inhabitant, or has a principal 
place of business, has jurisdiction to review the Secretary's ruling on 
the petition, provided that a compliant is filed within 20 days after 
the date of entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action on small 
entities.
    There are an estimated 145 handlers, 510 producer-packers, 8,300 
producers, and 350 importers who are currently subject to the 
provisions of the Order. The majority of these persons may be 
classified as small agricultural producers and small agricultural 
service firms. Small agricultural producers are defined by the Small 
Business Administration [13 CFR 121.601] as those having annual 
receipts of less than $500,000, and small service firms are defined as 
those having annual receipts of less than $5 million.
    The Administrator of the AMS has determined that this rule would 
not have a significant economic impact on a substantial number of small 
entities.
    In accordance with the Paperwork Reduction Act [44 U.S.C. Chapter 
35], and OMB regulations [5 CFR Part 1320], the information collection 
and recordkeeping requirements contained in this action have been 
previously approved under OMB control number 0581-0093.

Background

    The Honey Research, Promotion, and Consumer Information Order 
(Order) provides that each producer and importer shall pay to the Board 
a one cent per pound assessment rate on honey and honey products 
produced in or imported into the United States. Section 1240.5 of the 
Order defines honey products as products wherein honey is a principal 
ingredient.
    In order for the U.S. Customs Service (Customs) to collect the 
assessments on imported honey and honey products, each product needs to 
be identified by an HTS Code. Since the Board inception, honey has been 
assessed by Customs under HTS code number 0409.00.00. However, there 
were no HTS codes for honey products.
    The Board has identified flavored honey as a product containing 
approximately 99 percent honey. The Board estimates that 500,000 pounds 
of flavored honey are imported into the United States annually without 
the importer paying the required assessment. Therefore, at the 
recommendation of the Board, the Department requested the Committee for 
Statistical Annotation of Tariff Schedules (Committee) on the 
International Trade Commission to establish an HTS code for flavored 
honey. The Committee notified the Department on February 13, 1996, that 
a code has been established for flavored honey. The purpose of this 
rule is to add the new HTS code for flavored honey to the rules and 
regulations under the Order to provide authority for Customs to collect 
the assessment on all imported, flavored honey.
    This proposed rule would add the new 2106.90.9988 HTS code for 
flavored honey to section 1240.115(e) of the rules and regulations 
issued under the Order. Flavored honey would be assessed at the one-
cent-per-pound rate. A conversion factor is not necessary because the 
amount of honey in flavored honey is estimated at 99 percent of the 
total product. Customs will notify importers 60 to 90 days before it 
begins collecting the assessment on flavored honey. The notification 
will be made only after a final rule, if any, is issued on this action.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 1240

    Advertising, Agricultural research, Honey, Imports, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR Part 1240 is 
proposed to be amended as follows:

PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION 
ORDER

    1. The authority citation for 7 CFR Part 1240 continues to read as 
follows:

    Authority: 7 U.S.C. 4601-4612

    2. In Sec. 1240.115, paragraph (e) is revised to read as follows:


Sec. 1240.115  Levy of assessments.

* * * * *
    (e) The U.S. Customs Service (USCS) will collect assessments on all 
honey or honey products where honey is the principal ingredient 
imported under its tariff schedule (HTS heading numbers 0409.00.00 and 
21006.90.9988) at the time of entry or withdrawal for consumption and 
forward such assessment as per the agreement between the USCS and USDA. 
Any importer or agent who is exempt from payment of assessments 
pursuant to Sec. 1240.42 (a) and (b) of the Order may apply to the 
Board for reimbursement of such assessment paid.
* * * * *
    Dated: March 21, 1996.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-7441 Filed 3-26-96; 8:45 am]
BILLING CODE 3410-02-P