[Federal Register Volume 66, Number 156 (Monday, August 13, 2001)]
[Proposed Rules]
[Pages 42464-42469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20188]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[CN-01-001]


2001 Proposed Amendment to Cotton Board Rules and Regulations 
Adjusting Supplemental Assessment on Imports

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) is proposing to amend 
the Cotton Board Rules and Regulations by raising the value assigned to 
imported cotton for the purpose of calculating supplemental assessments 
collected for use by the Cotton Research and Promotion Program. An 
adjustment is required on an annual basis to ensure that the 
assessments collected on imported cotton and the cotton content of 
imported products remain similar to those paid on domestically produced 
cotton.

DATE: Comments must be received on or before September 12, 2001.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments may be mailed to USDA, AMS, 
Cotton Program, STOP 0224, 1400 Independence Avenue, SW, Washington, DC 
20250-0224 or Email [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 the hours of 8:00 a.m. to 4:00 p.m., Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: Whitney Rick, (202) 720-2259.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule has been determined to be ``not 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 proposed 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 
the 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.

[[Page 42465]]

    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 would raise the assessments paid by 
the importers under the Cotton Research and Promotion Order. Even 
though the assessment would be raised, the increase is small and will 
not significantly affect small businesses.
    The current assessment on imported cotton is $0.009833 per kilogram 
of imported cotton. The proposed assessment is $0.009965, an increase 
of $0.000132 or a 1.34 percent increase from the current assessment. 
From January through December 2000 approximately $20 million was 
collected at the $0.009833 per kilogram rate. Should the volume of 
cotton products imported into the U.S. remain at the same level in 
2001, one could expect the increased assessment to generate 
approximately $20.2 million or a 1.34 percent increase from 2000.

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 
requirements contained in the regulation to be amended have been 
previously approved by OMB and were 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, 
and the amended Order was published in the Federal Register on December 
10, 1991, (56 FR 64470). Proposed rule implementing the amended Order 
were published in the Federal Register on December 17, 1991, (56 FR 
65450). Implementing rules were published on July 1 and 2, 1992, (57 FR 
29181) and (57 FR 29431), respectively.
    This proposed rule would increase the value assigned to imported 
cotton in the Cotton Board Rules and Regulations (7 CFR 
1205.510(b)(2)). This value is used to calculate supplemental 
assessments on imported cotton and the cotton content of imported 
products. Supplemental assessments are the second part of a two-part 
assessment. The first part of the assessment is levied on the weight of 
cotton produced or imported at a rate of $1 per bale of cotton which is 
equivalent to 500 pounds or $1 per 226.8 kilograms of cotton.
    Supplemental assessments are levied at a rate of five-tenths of one 
percent of the value of domestically produced cotton, imported cotton, 
and the cotton content of imported products. The agency has adopted the 
practice of assigning the calendar year weighted average price received 
by U.S. farmers for Upland cotton to represent the value of imported 
cotton. This is done so that the assessment on domestically produced 
cotton and the assessment on imported cotton and the cotton content of 
imported products remain similar. The source for the average price 
statistic is ``Agricultural Prices'', a publication of the National 
Agricultural Statistics Service (NASS) of the Department of 
Agriculture. Use of the weighted average price figure in the 
calculation of supplemental assessments on imported cotton and the 
cotton content of imported products yields an assessment that 
approximates assessments paid on domestically produced cotton in the 
prior calendar year.
    The current value of imported cotton as published in the Federal 
Register (65 FR 25236) on May 1, 2000, for the purpose of calculating 
supplemental assessments on imported cotton is $1.0847 per kilogram. 
This number was calculated using the annual weighted average price 
received by farmers for Upland cotton during the calendar year 1999 
which was $0.492 per pound and multiplying by the conversion factor 
2.2046. Using the Average Weighted Price Received by U.S. farmers for 
Upland cotton for the calendar year 2000, which is $0.504 per pound, 
the new value of imported cotton is $1.1111 per kilogram. The proposed 
value is $.0264 per kilogram more than the previous value.
    An example of the complete assessment formula and how the various 
figures are obtained is as follows:
    One bale is equal to 500 pounds.
    One kilogram equals 2.2046 pounds.
    One pound equals 0.453597 kilograms.

One Dollar Per Bale Assessment Converted to Kilograms

    A 500 pound bale equals 226.8 kg. (500 x .453597).
    $1 per bale assessment equals $0.002000 per pound (1  500) 
or $0.004409 per kg. (1  226.8).

Supplemental Assessment of \5/10\ of One Percent of the Value of the 
Cotton Converted to Kilograms.

    The 2000 calendar year weighted average price received by producers 
for Upland cotton is $0.504 per pound or $1.1111 per kg. (0.504 x 
2.2046) = 1.1111.
    Five tenths of one percent of the average price in kg. equals 
$0.005556 per kg. (1.1111 x .005).

Total Assessment

    The total assessment per kilogram of raw cotton is obtained by 
adding the $1 per bale equivalent assessment of $0.004409 per kg. and 
the supplemental assessment $0.005556 per kg. which equals $0.009965 
per kg.
    The current assessment on imported cotton is $0.009833 per kilogram 
of imported cotton. The proposed assessment is $0.009965, an increase 
of $0.000132 per kilogram. This increase reflects the increase in the 
Average Weighted Price of Upland Cotton Received by U.S. Farmers during 
the period January through December 2000.
    Since the value of cotton is the basis of the supplemental 
assessment calculation and the figures shown in the right hand column 
of the Import Assessment Table 1205.510(b)(3) are a result of such a 
calculation, the figures in this table have been revised. These figures 
indicate the total assessment per kilogram due for each Harmonized 
Tariff Schedule (HTS) number subject to assessment.
    One HTS number subject to assessment pursuant to this regulation 
and found in the assessment table has been changed. In order to 
maintain consistency between the HTS and the assessment table, the 
changes to this one number have been incorporated into the assessment 
table. The last two digits of this number were changed to provide for 
statistical reporting purposes and involve no physical change to the 
products they represent. The assessment rate for the one number has 
been applied to each of the new replacement numbers in the assessment 
table. The following table represents the changes:

[[Page 42466]]



------------------------------------------------------------------------
                                         Conversion     Assessment cents/
     Old No.            New No.            factor              kg.
------------------------------------------------------------------------
    6303910000         6303910010            0.6429            0.6406
                       6303910020            0.6429            0.6406
------------------------------------------------------------------------

    A thirty day comment period is provided to comment on the changes 
to the Cotton Board Rules and Regulations proposed herein. This period 
is deemed appropriate because this proposal would slightly raise the 
assessments paid by importers under the Cotton Research and Promotion 
Order and would ensure that the measurements collected for imported 
cotton content products remain similar to those paid on domestically 
produced cotton. Accordingly, the change proposed in this rule, if 
adopted, should be implemented as soon as possible.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.
    For the reasons set forth in the preamble, it is proposed that 7 
CFR Part 1205 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)(2) and the table in paragraph 
(b)(3)(ii) are revised to read as follows:


Sec. 1205.510  Levy of assessments.

* * * * *
    (b) * * *
    (2) The 12-month average of monthly weighted average prices 
received by U.S. farmers will be calculated annually. Such weighted 
average will be used as the value of imported cotton for the purpose of 
levying the supplemental assessment on imported cotton and will be 
expressed in kilograms. The value of imported cotton for the purpose of 
levying this supplemental assessment is $0.9965 per kilogram.
    (3) * * *
    (ii) * * *

                         Import Assessment Table
                           [Raw Cotton Fiber]
------------------------------------------------------------------------
                                                         Conv.    Cents/
                        HTS No.                          fact.     kg.
------------------------------------------------------------------------
5201000500............................................        0   0.9965
5201001200............................................        0   0.9965
5201001400............................................        0   0.9965
5201001800............................................        0   0.9965
5201002200............................................        0   0.9965
5201002400............................................        0   0.9965
5201002800............................................        0   0.9965
5201003400............................................        0   0.9965
5201003800............................................        0   0.9965
5204110000............................................   1.1111   1.1072
5204200000............................................   1.1111   1.1072
5205111000............................................   1.1111   1.1072
5205112000............................................   1.1111   1.1072
5205121000............................................   1.1111   1.1072
5205122000............................................   1.1111   1.1072
5205131000............................................   1.1111   1.1072
5205132000............................................   1.1111   1.1072
5205141000............................................   1.1111   1.1072
5205210020............................................   1.1111   1.1072
5205210090............................................   1.1111   1.1072
5205220020............................................   1.1111   1.1072
5205220090............................................   1.1111   1.1072
5205230020............................................   1.1111   1.1072
5205230090............................................   1.1111   1.1072
5205240020............................................   1.1111   1.1072
5205240090............................................   1.1111   1.1072
5205310000............................................   1.1111   1.1072
5205320000............................................   1.1111   1.1072
5205330000............................................   1.1111   1.1072
5205340000............................................   1.1111   1.1072
5205410020............................................   1.1111   1.1072
5205410090............................................   1.1111   1.1072
5205420020............................................   1.1111   1.1072
5205420090............................................   1.1111   1.1072
5205440020............................................   1.1111   1.1072
5205440090............................................   1.1111   1.1072
5206120000............................................   0.5556   0.5537
5206130000............................................   0.5556   0.5537
5206140000............................................   0.5556   0.5537
5206220000............................................   0.5556   0.5537
5206230000............................................   0.5556   0.5537
5206240000............................................   0.5556   0.5537
5206310000............................................   0.5556   0.5537
5207100000............................................   1.1111   1.1072
5207900000............................................   0.5556   0.5537
5208112020............................................   1.1455   1.1415
5208112040............................................   1.1455   1.1415
5208112090............................................   1.1455   1.1415
5208114020............................................   1.1455   1.1415
5208114060............................................   1.1455   1.1415
5208114090............................................   1.1455   1.1415
5208118090............................................   1.1455   1.1415
5208124020............................................   1.1455   1.1415
5208124040............................................   1.1455   1.1415
5208124090............................................   1.1455   1.1415
5208126020............................................   1.1455   1.1415
5208126040............................................   1.1455   1.1415
5208126060............................................   1.1455   1.1415
5208126090............................................   1.1455   1.1415
5208128020............................................   1.1455   1.1415
5208128090............................................   1.1455   1.1415
5208130000............................................   1.1455   1.1415
5208192020............................................   1.1455   1.1415
5208192090............................................   1.1455   1.1415
5208194020............................................   1.1455   1.1415
5208194090............................................   1.1455   1.1415
5208196020............................................   1.1455   1.1415
5208196090............................................   1.1455   1.1415
5208224040............................................   1.1455   1.1415
5208224090............................................   1.1455   1.1415
5208226020............................................   1.1455   1.1415
5208226060............................................   1.1455   1.1415
5208228020............................................   1.1455   1.1415
5208230000............................................   1.1455   1.1415
5208292020............................................   1.1455   1.1415
5208292090............................................   1.1455   1.1415
5208294090............................................   1.1455   1.1415
5208296090............................................   1.1455   1.1415
5208298020............................................   1.1455   1.1415
5208312000............................................   1.1455   1.1415
5208321000............................................   1.1455   1.1415
5208323020............................................   1.1455   1.1415
5208323040............................................   1.1455   1.1415
5208323090............................................   1.1455   1.1415
5208324020............................................   1.1455   1.1415
5208324040............................................   1.1455   1.1415
5208325020............................................   1.1455   1.1415
5208330000............................................   1.1455   1.1415
5208392020............................................   1.1455   1.1415
5208392090............................................   1.1455   1.1415
5208394090............................................   1.1455   1.1415
5208396090............................................   1.1455   1.1415
5208398020............................................   1.1455   1.1415
5208412000............................................   1.1455   1.1415
5208416000............................................   1.1455   1.1415
5208418000............................................   1.1455   1.1415
5208421000............................................   1.1455   1.1415
5208423000............................................   1.1455   1.1415
5208424000............................................   1.1455   1.1415
5208425000............................................   1.1455   1.1415
5208430000............................................   1.1455   1.1415
5208492000............................................   1.1455   1.1415
5208494020............................................   1.1455   1.1415
5208494090............................................   1.1455   1.1415
5208496010............................................   1.1455   1.1415
5208496090............................................   1.1455   1.1415
5208498090............................................   1.1455   1.1415
5208512000............................................   1.1455   1.1415
5208516060............................................   1.1455   1.1415
5208518090............................................   1.1455   1.1415
5208523020............................................   1.1455   1.1415
5208523045............................................   1.1455   1.1415
5208523090............................................   1.1455   1.1415
5208524020............................................   1.1455   1.1415
5208524045............................................   1.1455   1.1415
5208524065............................................   1.1455   1.1415
5208525020............................................   1.1455   1.1415
5208530000............................................   1.1455   1.1415
5208592025............................................   1.1455   1.1415
5208592095............................................   1.1455   1.1415
5208594090............................................   1.1455   1.1415
5208596090............................................   1.1455   1.1415
5209110020............................................   1.1455   1.1415
5209110035............................................   1.1455   1.1415
5209110090............................................   1.1455   1.1415
5209120020............................................   1.1455   1.1415
5209120040............................................   1.1455   1.1415
5209190020............................................   1.1455   1.1415
5209190040............................................   1.1455   1.1415
5209190060............................................   1.1455   1.1415

[[Page 42467]]

 
5209190090............................................   1.1455   1.1415
5209210090............................................   1.1455   1.1415
5209220020............................................   1.1455   1.1415
5209220040............................................   1.1455   1.1415
5209290040............................................   1.1455   1.1415
5209290090............................................   1.1455   1.1415
5209313000............................................   1.1455   1.1415
5209316020............................................   1.1455   1.1415
5209316035............................................   1.1455   1.1415
5209316050............................................   1.1455   1.1415
5209316090............................................   1.1455   1.1415
5209320020............................................   1.1455   1.1415
5209320040............................................   1.1455   1.1415
5209390020............................................   1.1455   1.1415
5209390040............................................   1.1455   1.1415
5209390060............................................   1.1455   1.1415
5209390080............................................   1.1455   1.1415
5209390090............................................   1.1455   1.1415
5209413000............................................   1.1455   1.1415
5209416020............................................   1.1455   1.1415
5209416040............................................   1.1455   1.1415
5209420020............................................   1.0309   1.0273
5209420040............................................   1.0309   1.0273
5209430030............................................   1.1455   1.1415
5209430050............................................   1.1455   1.1415
5209490020............................................   1.1455   1.1415
5209490090............................................   1.1455   1.1415
5209516035............................................   1.1455   1.1415
5209516050............................................   1.1455   1.1415
5209520020............................................   1.1455   1.1415
5209590025............................................   1.1455   1.1415
5209590040............................................   1.1455   1.1415
5209590090............................................   1.1455   1.1415
5210114020............................................   0.6873   0.6849
5210114040............................................   0.6873   0.6849
5210116020............................................   0.6873   0.6849
5210116040............................................   0.6873   0.6849
5210116060............................................   0.6873   0.6849
5210118020............................................   0.6873   0.6849
5210120000............................................   0.6873   0.6849
5210192090............................................   0.6873   0.6849
5210214040............................................   0.6873   0.6849
5210216020............................................   0.6873   0.6849
5210216060............................................   0.6873   0.6849
5210218020............................................   0.6873   0.6849
5210314020............................................   0.6873   0.6849
5210314040............................................   0.6873   0.6849
5210316020............................................   0.6873   0.6849
5210318020............................................   0.6873   0.6849
5210414000............................................   0.6873   0.6849
5210416000............................................   0.6873   0.6849
5210418000............................................   0.6873   0.6849
5210498090............................................   0.6873   0.6849
5210514040............................................   0.6873   0.6849
5210516020............................................   0.6873   0.6849
5210516040............................................   0.6873   0.6849
5210516060............................................   0.6873   0.6849
5211110090............................................   0.6873   0.6849
5211120020............................................   0.6873   0.6849
5211190020............................................   0.6873   0.6849
5211190060............................................   0.6873   0.6849
5211210025............................................   0.6873   0.6849
5211210035............................................   0.4165    0.415
5211210050............................................   0.6873   0.6849
5211290090............................................   0.6873   0.6849
5211320020............................................   0.6873   0.6849
5211390040............................................   0.6873   0.6849
5211390060............................................   0.6873   0.6849
5211490020............................................   0.6873   0.6849
5211490090............................................   0.6873   0.6849
5211590025............................................   0.6873   0.6849
5212146090............................................   0.9164   0.9132
5212156020............................................   0.9164   0.9132
5212216090............................................   0.9164   0.9132
5509530030............................................   0.5556   0.5537
5509530060............................................   0.5556   0.5537
5513110020............................................   0.4009   0.3995
5513110040............................................   0.4009   0.3995
5513110060............................................   0.4009   0.3995
5513110090............................................   0.4009   0.3995
5513120000............................................   0.4009   0.3995
5513130020............................................   0.4009   0.3995
5513210020............................................   0.4009   0.3995
5513310000............................................   0.4009   0.3995
5514120020............................................   0.4009   0.3995
5516420060............................................   0.4009   0.3995
5516910060............................................   0.4009   0.3995
5516930090............................................   0.4009   0.3995
5601210010............................................   1.1455   1.1415
5601210090............................................   1.1455   1.1415
5601300000............................................   1.1455   1.1415
5602109090............................................   0.5727   0.5707
5602290000............................................   1.1455   1.1415
5602906000............................................    0.526   0.5242
5604900000............................................   0.5556   0.5537
5607902000............................................   0.8889   0.8858
5608901000............................................   1.1111   1.1072
5608902300............................................   1.1111   1.1072
5609001000............................................   1.1111   1.1072
5609004000............................................   0.5556   0.5537
5701104000............................................   0.0556    0.055
5701109000............................................   0.1111   0.1107
5701901010............................................   1.0444   1.0407
5702109020............................................      1.1   1.0962
5702312000............................................   0.0778    0.078
5702411000............................................   0.0722    0.072
5702412000............................................   0.0778    0.078
5702421000............................................   0.0778    0.078
5702913000............................................   0.0889    0.089
5702991010............................................   1.1111   1.1072
5702991090............................................   1.1111   1.1072
5703900000............................................   0.4489   0.4473
5801210000............................................   1.1455   1.1415
5801230000............................................   1.1455   1.1415
5801250010............................................   1.1455   1.1415
5801250020............................................   1.1455   1.1415
5801260020............................................   1.1455   1.1415
5802190000............................................   1.1455   1.1415
5802300030............................................   0.5727   0.5707
5804291000............................................   1.1455   1.1415
5806200010............................................   0.3534   0.3522
5806200090............................................   0.3534   0.3522
5806310000............................................   1.1455   1.1415
5806400000............................................   0.4296   0.4281
5808107000............................................   0.5727   0.5707
5808900010............................................   0.5727   0.5707
5811002000............................................   1.1455   1.1415
6001106000............................................   1.1455   1.1415
6001210000............................................   0.8591   0.8561
6001220000............................................   0.2864   0.2854
6001910010............................................   0.8591   0.8561
6001910020............................................   0.8591   0.8561
6001920020............................................   0.2864   0.2854
6001920030............................................   0.2864   0.2854
6001920040............................................   0.2864   0.2854
6002203000............................................   0.8681   0.8651
6002206000............................................   0.2894   0.2884
6002420000............................................   0.8681   0.8651
6002430010............................................   0.2894   0.2884
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6109100005............................................   0.9956   0.9921

[[Page 42468]]

 
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6206303020............................................   0.9961   0.9926
6206303030............................................   0.9961   0.9926

[[Page 42469]]

 
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6302219020............................................   0.8182   0.8153
6302219050............................................   0.8182   0.8153
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6302222020............................................   0.4091   0.4077
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6302317020............................................   1.1689   1.1648
6302317040............................................   1.1689   1.1648
6302317050............................................   1.1689   1.1648
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6302319050............................................   0.8182   0.8153
6302322020............................................   0.4091   0.4077
6302322040............................................   0.4091   0.4077
6302402010............................................   0.9935     0.99
6302511000............................................   0.5844   0.5824
6302512000............................................   0.8766   0.8735
6302513000............................................   0.5844   0.5824
6302514000............................................   0.8182   0.8153
6302600010............................................   1.1689   1.1648
6302600020............................................    1.052   1.0483
6302600030............................................    1.052   1.0483
6302910005............................................    1.052   1.0483
6302910015............................................   1.1689   1.1648
6302910025............................................    1.052   1.0483
6302910035............................................    1.052   1.0483
6302910045............................................    1.052   1.0483
6302910050............................................    1.052   1.0483
6302910060............................................    1.052   1.0483
6303110000............................................   0.9448   0.9415
6303910010............................................   0.6429   0.6406
6303910020............................................   0.6429   0.6406
6304111000............................................   1.0629   1.0592
6304190500............................................    1.052   1.0483
6304191000............................................   1.1689   1.1648
6304191500............................................   0.4091   0.4077
6304192000............................................   0.4091   0.4077
6304910020............................................   0.9351   0.9318
6304920000............................................   0.9351   0.9318
6505901540............................................    0.181   0.1804
6505902060............................................   0.9935     0.99
6505902545............................................   0.5844   0.5824
------------------------------------------------------------------------

* * * * *

    Dated: August 7, 2001.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 01-20188 Filed 8-10-01; 8:45 am]
BILLING CODE 3410-02-P