[Federal Register Volume 69, Number 210 (Monday, November 1, 2004)]
[Rules and Regulations]
[Pages 63317-63318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24352]



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  Federal Register / Vol. 69, No. 210 / Monday, November 1, 2004 / 
Rules and Regulations  

[[Page 63317]]



DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service

7 CFR Part 1580

RIN 0551-AA66


Trade Adjustment Assistance for Farmers

AGENCY: Foreign Agricultural Service, USDA.

ACTION: Final rule; Technical amendments.

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

SUMMARY: This final rule makes technical amendments to the regulation 
implementing the Trade Adjustment Assistance for Farmers (TAA) program.

DATES: Effective on November 1, 2004.

FOR FURTHER INFORMATION CONTACT: Jean-Louis Pajot, Import Policies and 
Programs Division, Foreign Agricultural Service, 1400 Independence 
Avenue, SW., STOP 1021, by e-mail at: [email protected], 
telephone 202-720-2916, or fax at 202-720-0876.

SUPPLEMENTARY INFORMATION: The regulation implementing the TAA program 
is codified at 7 CFR part 1580. The program is authorized by Chapter 6 
of Title II of the Trade Act of 1974, as amended by Subtitle C of Title 
I of the Trade Act of 2002 (Pub. L. 107-210) (19 U.S.C. 2551, et seq.) 
(the Trade Act).
    This regulation makes the following five technical corrections to 7 
CFR Part 1580:
    The first correction specifies the documentation required to 
certify the net farm income of agricultural cooperatives, partnerships 
and corporations. These entities are eligible to apply for TAA because 
Sec.  1580.102 defines a ``producer'' as a person who is either an 
owner, operator, landlord, tenant, or sharecropper, who shares in the 
risk of producing a crop and who is entitled to share in the crop 
available for marketing from the farm, or a qualified fisherman, and 
the same section defines a ``person'' to mean an individual, 
partnership, joint stock owner, corporation, association, trust, 
estate, or another legal entity as defined in 7 CFR 1400.3. The current 
regulation, however, only specifies documentation for certifying the 
net farm income of self-employed farmers, i.e., those filing Internal 
Revenue Service (IRS) Schedule F (Form 1040): Profit or Loss From 
Farming, and Form 4835: Farm Rental Income and Expenses. Therefore, to 
correct this deficiency, all references to IRS forms are removed from 
Sec.  1580.102. The amended rule sets forth a complete list of 
acceptable forms and schedules supporting net income certifications 
under Sec. 1580.502 of the regulation, where record maintenance is 
addressed.
    The second change corrects an inconsistency in identifying the 
relevant tax year to be used when producers certify to lower net farm 
or fishing incomes. Producers petition for TAA with respect to the most 
recent marketing year for which national average prices are available. 
Section 1580.102 defines net farm and fishing income as income earned 
during the tax year that most closely corresponds with the marketing 
year being considered for TAA. To be eligible for payments, producers 
must certify under Sec.  1580.301(e)(4) that their net farm or fishing 
income for the most recent tax year was less than that during their 
pre-adjustment year. Because national average prices take months to be 
gathered and published by the Department, a producer's most recent tax 
year may follow the tax year that most closely corresponds with the 
marketing year being considered for TAA. Therefore, to correct this 
deficiency, Sec.  1580.301(e)(4) is amended to delete reference to 
``the most recent tax year''. Consequently producers are required to 
certify that net farm or fishing income during the tax year that most 
closely corresponds with the marketing year under consideration was 
less than that during their pre-adjustment tax year, in order to 
receive payments.
    The third change authorizes the use of alternative procedures for 
producers to certify to their adjusted gross income (AGI) authorized by 
section 296 (a)(2)(A)(ii)(II) of the Trade Act. Section 1580.301(e)(6) 
describes the documentation that a producer shall provide to support 
certification that their AGI, as determined in accordance with 7 CFR 
1400.601, for the 3 preceding tax years does not exceed $2,500,000. 
Section 1580.301(e) is therefore amended to allow producers to certify 
their AGI limitation by either providing specified documentation or by 
providing other information prescribed by the Department. This 
amendment will permit FAS to conform the TAA procedures to those 
adopted by the Farm Service Agency (FSA) regarding certification of 
AGI. Producers will still be obligated to provide specific documents 
supporting their AGI, when requested by the Department.
    The fourth correction concerns the deadline by which applicants 
must provide certifications to qualify for adjustment assistance 
payments. Under Sec.  1580.301(c) producers must submit documentation 
to support the amount of their production when submitting an 
application for TAA. The purpose of this requirement is twofold. First, 
it assures that only verifiable producers of the commodity are referred 
to the Extension Service for free technical assistance and services; 
and second, it establishes a fiscal obligation for each applicant, upon 
which the Department builds its estimate of program expenditures and 
calculates prorated payments, when appropriated funds are insufficient. 
Section 1580.303(a) requires applicants to satisfy by September 30 all 
the conditions of Sec.  1580.301 to qualify for TAA payments. This 
statement could be misinterpreted to mean that producers have until 
September 30, to provide documentation supporting the amount of their 
production. Therefore, Sec.  1580.303(a) is amended to clarify that the 
September 30 deadline applies only to the certifications under Sec.  
1580.301(e).
    The fifth correction concerns the appeals procedure under Sec.  
1580.505. The regulation designated the FSA administrative appeal 
procedure to resolve disputes involving applications for program 
benefits. This has led to some confusion that entities applying for TAA 
benefits could appeal denials to the National Appeals Division (NAD) 
within USDA. This was not intended, and would not be appropriate, 
because appeals from NAD go to the United States District Courts, 
whereas the Trade Act (19 U.S.C. 2395) grants to the

[[Page 63318]]

United States Court of International Trade jurisdiction over of all 
claims arising under the TAA program. Therefore, Sec.  1580.505 is 
amended to delete the utilization of FSA's administrative appeals 
process, including oversight by the FSA Deputy Administrator and State 
committees.

Corrections to the Final Rule

0
Accordingly, for the reasons set forth in the preamble, FAS amends 7 
CFR part 1580 to read as follows:

PART 1580--[CORRECTED]

0
1. The authority citation for 7 CFR part 1580 continues to read as 
follows:

    Authority: 19 U.S.C. 2401.


Sec.  1580.102  [Corrected]

0
2. In Sec.  1580.102, the definition of ``Deputy Administrator'' is 
deleted, and the definitions for ``net farm income'', ``net fishing 
income,'' and ``qualified fisherman'' are revised to read as follows:


Sec.  1580.102  Definitions.

* * * * *
    Net farm income means net farm profit or loss, excluding payments 
under this part, reported to the Internal Revenue Service for the tax 
year that most closely corresponds with the marketing year under 
consideration.
    Net fishing income means net profit or loss, excluding payments 
under this part, reported to the Internal Revenue Service for the tax 
year that most closely corresponds with the marketing year under 
consideration.
* * * * *
    Qualified fisherman means a person whose catch competes in the 
marketplace with like or directly competitive aquaculture products and 
report net fishing income to the Internal Revenue Service.
* * * * *


Sec.  1580.301  [Corrected]

0
3. Section 1580.301 is amdended by revising paragaraphs (e)(4)and 
(e)(6) and by adding paragraph (e)(7) to read as follows:


Sec.  1580.301  Application for trade adjustment assistance.

* * * * *
    (e) * * *
    (4) Certification that net farm or fishing income was less than 
that during the producer's pre-adjustment year.
* * * * *
    (6) To comply with certifications in paragraph (e)(4) of this 
section, an applicant shall provide either--
* * * * *
    (7) To comply with certifications in paragraph (e)(5) of this 
section, an applicant shall provide either--
    (i) Supporting documentation from a certified public accountant or 
attorney,
    (ii) Relevant documentation and other supporting financial data, 
such as financial statements, balance sheets, and reports prepared for 
or provided to the Internal Revenue Service or another U.S. Government 
agency, or
    (iii) Information prescribed by the Department.
* * * * *


Sec.  1580.303  [Corrected]

0
4. Section 1580.303(a) is revised to read as follows:


Sec.  1580.303  Adjustment assistance payments.

    (a) Applicants shall satisfy by September 30 all certifications of 
Sec.  1580.301(e) to qualify for adjustment assistance payments.
* * * * *

0
5. Section 1580.501 is revised as follows:


Sec.  1580.501  Administration.

    (a) The application process shall be carried out in the field by 
FSA county committees.
    (b) FSA county committees and representatives do not have the 
authority to modify or waive any of the provisions of this part.
    (c) The Administrator, may, by timely and appropriate public 
notification, modify non-statutory opening dates and deadlines for 
submitting petitions.
    (d) The Administrator may authorize the FSA county committees to 
waive or modify non-statutory application deadlines or other program 
requirements in cases where lateness or failure to meet such other 
requirements by applicants does not adversely affect the operation of 
the program.


Sec.  1580.502  [Corrected]

0
6. Section 1580.502 is amended by adding paragraphs (a)(1) and (a)(2) 
and by revising paragraph (d) to read as follows:


Sec.  1580.502  Maintenance of records, audits and compliance.

    (a) * * *
    (1) Acceptable production documentation may include copies of 
receipts, ledgers, income statements, deposit slips, register tapes, 
invoices for custom harvesting, records to verify production costs, 
contemporaneous measurements, truck scale tickets, fish tickets, 
landing reports, and contemporaneous diaries that are determined 
acceptable by the county committee.
    (2) Acceptable income documentation shall include, as appropriate, 
copies of Internal Revenue Service Form 990-C, Farmers' Cooperative 
Association Income Tax Return; Form 1040, U.S. Individual Income Tax 
Return; Schedule C (Form 1040), Profit or Loss From Business; Schedule 
F (Form 1040), Profit or Loss From Farming; Form 1065, U.S. Return of 
Partnership Income; Form 1120, U.S. Corporation Income Tax Return; or 
Form 4835, Farm Rental Income and Expenses.
* * * * *
    (d) If requested in writing by the United States Department of 
Agriculture or the Comptroller General of the United States, the 
producer shall provide all information and documentation the reviewing 
authority determines necessary to verify any information or 
certification provided under this subpart, including all documents 
referred to in Sec.  1580.301(c), within 30 days. Documentation may be 
submitted by facsimile, in person, or by mail. Failure to provide 
necessary and accurate information to verify compliance, or failure to 
comply with the subpart's requirements, will result in ineligibility 
for all program benefits subject to this subpart for the year or years 
subject to the request.

0
7. Section 1580.505 is revised to read as follows:


Sec.  1580.505  Appeals

    Any person aggrieved by a final determination made with respect to 
an application for program benefits under this part may appeal to the 
United States Court of International Trade for a review of such 
determination, in accordance with its rules and procedures.

    Signed at Washington, DC, on October 14, 2004.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service.
[FR Doc. 04-24352 Filed 10-29-04; 8:45 am]
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