[Federal Register Volume 65, Number 228 (Monday, November 27, 2000)]
[Rules and Regulations]
[Pages 70643-70644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30139]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 65, No. 228 / Monday, November 27, 2000 / 
Rules and Regulations  

[[Page 70643]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[CN-00-009]


Amendment to Cotton Board Rules and Regulations Regarding Import 
Assessment Exemptions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service is proposing to amend the 
regulations regarding import assessment exemptions by adjusting the 
provisions for automatic assessment exemptions on certain imports of 
textile and apparel products to reflect additional Harmonized Tariff 
Schedule (HTS) numbers. The purpose of the proposed changes is to avoid 
multiple assessment of U.S. produced cotton that has been exported and 
then imported back into the U.S. in the form of textile and apparel 
products.

DATES: Effective November 28, 2000; comments received by December 27, 
2000 will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments may be mailed to USDA, AMS, Cotton 
Program, STOP 0224, 1400 Independence Avenue, SW, Washington, D.C. 
20250-0224; fax (202) 690-1718, or E-mail [email protected]. 
Comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be available for 
public inspection at this address during regular business hours.

FOR FURTHER INFORMATION CONTACT: Whitney Rick, Chief, Cotton Research 
and Promotion Staff: phone (202) 720-6603, facsimile (202) 690-1718, or 
email [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule has been determined to be ``non significant'' 
for purposes of Executive Order 12866, and, therefore, has not been 
reviewed by the Office of Management and Budget.

Executive Order 12988

    This proposed 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.
    The Cotton Research and Promotion 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 
entry of ruling.

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.
    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 proposed 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 proposed rule will neither raise nor lower 
assessments paid by importers subject to the Cotton Research and 
Promotion Order and therefore presents minimal economic impact. This 
action will improve the agency's ability to prevent double-assessment 
of U.S. produced cotton reentering the U.S. in the form of textile and 
apparel products.
    Under these circumstances AMS has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

Paperwork Reduction

    In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act (PRA) (44 U.S.C. 3501 et seq.), the information collection in the 
regulation to be amended has been previously approved by OMB and was 
assigned control number 0581-0093.

Background

    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. 
Final implementing rules were published on July 1 and 2, 1992, (57 FR 
29181) and (57 FR 29431), respectively.
    Section 1205.335(c)(1) of the Cotton Research and Promotion Order 
provides for exemptions from assessments for certain imported goods 
when they contain U.S. produced cotton in order to minimize the 
occurrence of double assessments on U.S. cotton. All U.S. produced 
cotton is assessed at the time it is first sold. A significant amount 
of U.S. produced cotton is converted into fabric in the U.S. and then 
exported. The U.S. cotton containing fabric often returns to the U.S. 
in the form of apparel and textile articles.
    Section 1205.510 (b)(5) of the Cotton Board Rules and Regulations 
identifies

[[Page 70644]]

specific Harmonized Tariff Schedule (HTS) numbers that are exempted to 
avoid a double assessment of this U.S. produced cotton. Recently, new 
HTS numbers were established to identify U.S. produced cotton fabrics 
and/or yarns that are wholly formed and/or cut in the U.S., exported 
and then imported back into the U.S. in the form of apparel products 
and/or luggage containing U.S. produced cotton. These HTS numbers need 
to be exempt to avoid a double assessment of U.S. produced cotton. 
Section 1205.510(b)(5) needs revision to included ten newly identified 
HTS numbers; 9819.11.30, 9819.11.60, 9820.11.03, 9820.11.06, 
9820.11.09, 9820.11.12, 9820.11.18, 9820.11.21, 9802.00.8044, or 
9802.00.8046 (see Presidential Proclamation 7350 of October 2, 2000 at 
65 FR 59321, published on October 4, 2000).
    Pursuant to 5 U.S.C. 533, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exist for not postponing the effective date 
of this rule until thirty-days after publication in the Federal 
Register because: (1) This rule needs to be effective promptly in order 
to reflect new HTS numbers that became applicable in October of 2000; 
(2) this rule will prevent importers of cotton and cotton products from 
being double assessed on U.S. produced cotton that is exported and then 
returned to the U.S. in the form of textile and apparel products; and 
(3) this rule provided a thirty-day comment period, and any comments 
received will be considered prior to finalization of this rule. For the 
same reasons, a thirty-day comment period is deemed appropriate.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

    For 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 Sec. 1205.510, paragraph (b)(5) is revised to read as 
follows:


Sec. 1205.510  Levy of assessments.

* * * * *
    (b) *  *  *
    (5) Imported textile and apparel articles assembled of components 
formed from cotton produced in the Unites States and identified by HTS 
numbers 9819.11.03, 9819.11.06, 9820.11.03, 9820.11.06, 9820.11.09, 
9820.11.12, 9820.11.18, 9820.11.21, 9802.00.8015, 9802.00.9000, 
9802.00.8044, or 9802.00.8046 shall not subject to assessment.
* * * * *

    Dated: November 20, 2000.
Norma R. McDill,
Acting Deputy Administrator.
[FR Doc. 00-30139 Filed 11-24-00; 8:45 am]
BILLING CODE 3410-02-P