[Federal Register Volume 65, Number 112 (Friday, June 9, 2000)]
[Rules and Regulations]
[Pages 36597-36598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14693]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 112 / Friday, June 9, 2000 / Rules 
and Regulations  

[[Page 36597]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 27 and 28

[Docket No. CN-00-001]
RIN 0581-AB67


Revision of Cotton Classification Procedures for Determining 
Upland Cotton Color Grade

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is revising the 
procedure for determining the official color grade for Upland cotton. 
The color grade for Upland cotton is a part of the official 
classification which denotes cotton fiber quality used in the marketing 
and manufacturing of cotton. Previously, the color grade was determined 
by visual examination and comparison to the Official Cotton Standards 
by qualified cotton classers. The revision replaces the classer's color 
determination with the instrument color measurement made by the High 
Volume Instrument (HVI) system used for official cotton classification 
for Upland Cotton since 1991.

EFFECTIVE DATE: July 1, 2000.

FOR FURTHER INFORMATION CONTACT: Lee Cliburn, 202-720-2145.

SUPPLEMENTARY INFORMATION: A proposed rule detailing the revision was 
published in the Federal Register on March 1, 2000 (65 FR 10979). A 30-
day comment period was provided for interested persons to respond to 
the proposed rule. No comments were received.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866, therefore, it has not been reviewed 
by the Office of Management and Budget (OMB).
    This final 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. 
There are no administrative procedures which must be exhausted prior to 
any judicial challenge to the provisions of this rule.

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.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be disproportionately burdened. There are an estimated 35,150 
cotton growers, merchants, and textile manufacturers in the U.S. who 
voluntarily use the AMS cotton classing services annually under the 
United States Cotton Standards Act, the Cotton Statistics and Estimates 
Act, and the Cotton Futures Act. The majority of these entities are 
small businesses under the criteria established by the Small Business 
Administration (13 CFR Sec. 121.601). The change in procedure will not 
significantly affect small businesses as defined in the RFA because:
    (1) Classification will continue to be based upon the Official 
Standards for Upland Cotton Color Grade established and maintained by 
the Department;
    (2) The High Volume Instrument color measurement has been a part of 
the official classification record since 1991. Implementation of the 
revision for all cotton classification will not affect competition in 
the marketplace or adversely impact on cotton classification fees; and
    (3) The use of cotton classification services is voluntary. For the 
1999 crop, 15,825,000 running bales were produced by growers, and 
virtually all of them were voluntarily submitted for USDA 
classification. Classification services provided for merchants and 
manufacturers during the same period totaled approximately 404,000 
bales.

Paperwork Reduction Act

    In compliance with 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 provisions 
amended by this final rule have been previously approved by OMB and 
were assigned OMB control number 0581-0009 under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.).

Background

    Pursuant to the authority contained in the United States Cotton 
Standards Act, the Secretary of Agriculture maintains official cotton 
standards of the United States and provides classification and testing 
services to cotton producers, textile manufacturers, merchants, and 
others in the domestic and international cotton industry. The standards 
are used for the classification of American upland cotton and provide a 
basis for the determination of value for commercial purposes. 
Classification services provide information on quality of cotton. The 
National Cotton Council represents the interests of all seven segments 
of the U.S. cotton industry: growers, ginners, warehousers, merchants, 
cooperatives, manufacturers, and cottonseed oil crushers.

Need for Revisions

    High Volume Instrument classification was adopted for all USDA 
classification of American upland cotton in 1991. The color grade is a 
component of the official USDA classification. Although High Volume 
Instrument colormeter readings have been reported since 1991, at the 
request of the industry, USDA continued the procedure of determining 
the official color grade by human cotton classers because of the 
historical importance of color in determining the quality of cotton. 
With the passage of time, confidence in USDA High Volume Instrument 
measurements of fiber quality characteristics for classification of 
cotton grew to the extent that industry representatives requested that 
High Volume Instrument colormeter readings be used for the official 
determination of color grade.
    AMS conducted a pilot project during the 1998 and 1999 cotton 
classing seasons to implement an adjustment to the existing High Volume 
Instrument color measurement so that it would

[[Page 36598]]

more closely match the Official Cotton Standards used by classers for 
official color grade determination. Data from the project, which the 
AMS Cotton Program conducted in cooperation with the National Cotton 
Council's Quality Task Force, showed that the HVI color measurement 
closely matched the Official Cotton Grade Standards for color. Results 
from the 1998 and 1999 crops showed that the HVI colormeter determines 
Official color grades as accurately as cotton classers. In December of 
1999, the National Cotton Council Quality Task Force recommended that 
AMS replace the cotton classer determination with the HVI colormeter 
determination for color grade. AMS will now use the HVI colormeter 
determination as the official component of classification of American 
Upland cotton for color grade.
    For the reasons set forth above, this proposal amends the sections 
in Parts 28--Cotton Classing, Testing, and Standards, Subpart A--
Regulations Under the United States Cotton Standards Act, which 
establish the procedures for determining official cotton classification 
based on the Official Cotton Grade Standards. Since cotton 
classification services under the United States Cotton Futures Act must 
conform to the requirements of the Cotton Standards Act, this final 
rule also amends the sections in Part 27--Cotton Classification Under 
Cotton Futures Legislation which establish the procedures for 
determining cotton classification for cotton submitted for futures 
certification.
    Accordingly, under Part 27, in Sec. 27.2 (n), the definition of the 
term ``classification'' is revised to reflect the changes in procedures 
made under Part 28.
    Also under Part 27, Sec. 27.31 is revised to reflect the deletion 
of the requirement for cotton classers to determine color grade. The 
revised heading and section reflect the changes made in procedures for 
determination of cotton quality in accordance with the official 
standards.
    In Part 28, Sec. 28.8 is revised to reflect the change in cotton 
classification procedures which replaces classer visual examinations to 
fix color with instrument color measurement by High Volume Instruments. 
Miscellaneous other changes are made to the sections to better reflect 
current procedures in view of color determination change. For example, 
those determinations made by cotton classers or by authorized Cotton 
Program employees will be specified.
    These changes will be made effective on July 1, 2000, when 
classification of newly harvested 2000 crop cotton will begin.

List of Subjects

7 CFR Part 27

    Commodity Futures, Cotton.

7 CFR Part 28

    Administrative practice and procedure, Cotton, Reporting and 
recordkeeping requirements, Warehouses.

    For the reasons set forth in the preamble, 7 CFR parts 27 and 28 is 
revised to read as follows:

PART 27--[AMENDED]

    1. The authority citation for 7 CFR part 27 continues to read as 
follows:

    Authority: 7 U.S.C. 15b, 7 U.S.C. 4736, 7 U.S.C. 1622(g).


    2. In Sec. 27.2, paragraph (n) is revised to read as follows:


Sec. 27.2  Terms defined.

* * * * *
    (n) Classification. The classification of any cotton shall be 
determined by the quality of a sample in accordance with Official 
Cotton Standards of the United States for the color grade and the leaf 
grade of American upland cotton, the length of staple, and fiber 
property measurements such as micronaire. High Volume Instruments will 
determine all fiber property measurements except leaf grade and 
extraneous matter. High Volume Instrument colormeter measurements will 
be used for determining the official color grade. Cotton classers, 
designated as such by the Director, will determine the official leaf 
grade and extraneous matter, and authorized Cotton Program employees 
will determine all fiber property measurements using High Volume 
Instruments.
* * * * *
    3. Section 27.31 is revised to read as follows:


Sec. 27.31  Classification of Cotton.

    For the purposes of subsection 15b (f) of the Act, classification 
of cotton is the determination of the quality of a sample in accordance 
with the Official Cotton Standards of the United States for the color 
grade and the leaf grade of American upland cotton, the length of 
staple, and fiber property measurements such as micronaire. High Volume 
Instruments will determine all fiber property measurements except leaf 
grade and extraneous matter. High Volume Instrument colormeter 
measurements will be used for determining the official color grade. 
Cotton classers, designated as such by the Director, will determine the 
official leaf grade and extraneous matter, and authorized Cotton 
Program employees will determine all fiber property measurements using 
High Volume Instruments.

PART 28--[AMENDED]

    1. The authority citation for 7 CFR part 28, Subpart A is revised 
to read as follows:

    Authority: 7 U.S.C. 55 and 61.


    2. Section 28.8 is revised to read as follows:


Sec. 28.8  Classification of cotton; determination.

    For the purposes of the Act, the classification of any cotton shall 
be determined by the quality of a sample in accordance with Official 
Cotton Standards of the United States for the color grade and the leaf 
grade of American upland cotton, the length of staple, and fiber 
property measurements such as micronaire. High Volume Instruments will 
determine all fiber property measurements except leaf grade and 
extraneous matter. High Volume Instrument colormeter measurements will 
be used for determining the official color grade. Cotton classers will 
determine the official leaf grade and extraneous matter, and authorized 
Cotton Program employees will determine all fiber property measurements 
using High Volume Instruments. The classification record of a classing 
office or the Quality Assurance Unit with respect to any cotton shall 
be deemed to be the classification record of the Department.

    Dated: June 6, 2000.
Kathleen A. Merrigan,
Administrator, Agricultural Marketing Service.
[FR Doc. 00-14693 Filed 6-8-00; 8:45 am]
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