[Federal Register Volume 72, Number 101 (Friday, May 25, 2007)]
[Notices]
[Pages 29363-29365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-10090]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Pima Cotton Trust Fund

AGENCY: U.S. Customs and Border Protection, Homeland Security.

ACTION: General notice.

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SUMMARY: On December 20, 2006, President Bush signed into law the Tax 
Relief and Health Care Act of 2006. Within Division C of the Act, 
section 407 of Title IV establishes a Cotton Trust Fund in the Treasury 
of the United States to be known as the ``Pima Cotton Trust Fund.'' The 
Pima Cotton Trust Fund is comprised of funds transferred from the 
general fund of the Treasury in amounts equal to duties collected since 
January 1, 1994, on certain imports of pima cotton products. Section 
407 of the Act authorizes distributions out of the Trust Fund in each 
of fiscal years 2007 and 2008, payable to eligible manufacturers and 
spinners of certain pima cotton products, as well as to a nationally

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recognized association established for the promotion of pima cotton 
grown in the United States for use in textile and apparel goods. 
Eligible claimants are directed to follow the statutory procedures to 
claim a distribution from the Pima Cotton Trust Fund. This document 
sets forth the law and announces applicable deadlines for claim and 
affidavit submission as well as the address to which claims, affidavits 
and related information must be sent.

DATES: For fiscal year 2007 distributions, all claims and affidavits 
must be mailed to CBP and postmarked no later than July 1, 2007. For 
fiscal year 2008 distributions, all claims and affidavits must be 
mailed to CBP and postmarked no later than March 1, 2008.

ADDRESSES: Claims, affidavits and supporting documentation for 
distribution from the Pima Cotton Trust Fund must be sent to U.S. 
Customs and Border Protection, Office of International Trade, Summary 
and Account Management Division, Entry and Drawback Management Branch, 
Attention: Pima Cotton Trust Fund Unit, 1300 Pennsylvania Avenue, NW., 
Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Sharon Taylor at (202) 344-2326 or via 
e-mail at [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    Within Division C of the Tax Relief and Health Care Act of 2006 
(Public Law 109-432, 120 Stat. 2922), section 407 of Title IV 
establishes a Cotton Trust Fund in the Treasury of the United States to 
be known as the Pima Cotton Trust Fund, from which distributions are 
authorized to be payable to eligible manufacturers and spinners of 
certain pima cotton products as well as to a nationally recognized 
association for the promotion of pima cotton grown in the United States 
for use in textile and apparel goods.
    This document sets forth the statute in its entirety and informs 
claimants how to apply for a distribution from the fund.

Section 407, Division C, Title IV, of the Tax Relief and Health Care 
Act of 2006

    The statute reads as follows:

SEC. 407. Cotton Trust Fund.

    (a) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the ``Pima 
Cotton Trust Fund'' (in this section referred to as the ``Trust 
Fund''), consisting of such amounts as may be transferred to the Trust 
Fund under subsection (b).
    (b) Transfer of Amounts.--
    (1) In general.--Beginning October 1, 2006, the Secretary of the 
Treasury shall transfer to the Trust Fund, from the general fund of the 
Treasury, amounts determined by the Secretary of the Treasury to be 
equivalent to the amounts received in the general fund that are 
attributable to duties received since January 1, 1994, on articles 
under subheadings 5208.21.60, 5208.22.80, 5208.29.80, 5208.31.80, 
5208.32.50, 5208.39.80, 5208.41.80, 5208.42.50, 5208.49.80, 5208.51.80, 
5208.52.50, and 5208.59.80 of the Harmonized Tariff Schedule of the 
United States, subject to the limitation in paragraph (2).
    (2) Limitation.--The Secretary may not transfer more than 
$16,000,000 to the Trust Fund in any fiscal year, and may not transfer 
any amount beginning on or after October 1, 2008.
    (c) Distribution of Funds.--From amounts in the Trust Fund, the 
Commissioner of the Bureau of Customs and Border Protection shall make 
the following payments annually beginning in fiscal year 2007:
    (1) 25 percent of the amounts in the Trust Fund shall be paid 
annually to a nationally recognized association established for the 
promotion of pima cotton grown in the United States for the use in 
textile and apparel goods.
    (2) 25 percent of the amounts in the Trust Fund shall be paid 
annually to yarn spinners of pima cotton grown in the United States, 
and shall be allocated to each spinner in an amount that bears the same 
ratio as--
    (A) the spinner's production of ring spun cotton yarns, measuring 
less than 83.33 decitex (exceeding 120 metric number) from pima cotton 
grown in the United States in single and plied form during the period 
January 1, 1998, through December 31, 2003 (as evidenced by an 
affidavit provided by the spinner) bears to --
    (B) the production of the yarns described in subparagraph (A) 
during the period January 1, 1998, through December 31, 2003, for all 
spinners who qualify under this paragraph.
    (3) 50 percent of the amounts in the Trust Fund shall be paid 
annually to those manufacturers who cut and sew cotton shirts in the 
United States who certify that they used imported cotton fabric during 
the period January 1, 1998, through July 1, 2003, and shall be 
allocated to each such manufacturer in an amount that bears the same 
ratio as--
    (A) the dollar value (excluding duty, shipping, and related costs) 
of imported woven cotton shirting fabric of 80s or higher count and 2-
ply in warp purchased by the manufacturer during calendar year 2002 (as 
evidenced by an affidavit from the manufacturer that meets the 
requirements of subsection (d)) used in the manufacturing of men's and 
boys' cotton shirts, bears to--
    (B) the dollar value (excluding duty, shipping, and related costs) 
of the fabric described in subparagraph (A) purchased during calendar 
year 2002 by all manufacturers who qualify under this paragraph.
    (d) Affidavit of Shirting Manufacturers.--The affidavit required by 
subsection (c)(3)(A) is a notarized affidavit provided by an officer of 
the manufacturer of men's and boys' shirts concerned that affirms--
    (1) that the manufacturer used imported cotton fabric during the 
period January 1, 1998, through July 1, 2003, to cut and sew men's and 
boys' woven cotton shirts in the United States;
    (2) the dollar value of imported woven cotton shirting fabric of 
80s or higher count and 2-ply in warp purchased during calendar year 
2002;
    (3) that the manufacturer maintains invoices along with other 
supporting documentation (such as price lists and other technical 
descriptions of the fabric qualities) showing the dollar value of such 
fabric purchased, the date of purchase, and evidencing the fabric as 
woven cotton fabric of 80s or higher count and 2-ply in warp; and
    (4) that the fabric was suitable for use in the manufacturing of 
men's and boys' cotton shirts.
    (e) Date of Purchase.--For purposes of the affidavit under 
subsection (d), the date of purchase shall be the invoice date, and the 
dollar value shall be determined excluding duty, shipping, and related 
costs.
    (f) Affidavit of Yarn Spinners.--The affidavit required by 
subsection (c)(2)(A) is a notarized affidavit provided by an officer of 
the producer of ring spun yarns that affirms--
    (1) that the producer used pima cotton grown in the United States 
during the period January 1, 2002, through December 31, 2002, to 
produce ring spun cotton yarns, measuring less than 83.33 decitex 
(exceeding 120 metric number), in single and plied form during 2002;
    (2) the quantity, measured in pounds, of ring spun cotton yarns, 
measuring less than 83.33 decitex (exceeding 120 metric number), in 
single and plied form during calendar year 2002; and
    (3) that the producer maintains supporting documentation showing 
the quantity of such yarns produced, and evidencing the yarns as ring 
spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 
metric number), in

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single and plied form during calendar year 2002.
    (g) No Appeal.--Any amount paid by the Commissioner of the Bureau 
of Customs and Border Protection under this section shall be final and 
not subject to appeal or protest.

Procedures for Claiming a Distribution Under the Statute

    Claimants are directed to follow the legal procedures set forth in 
section 407 of the Act to claim a distribution from the Pima Cotton 
Trust Fund.

Deadlines for Claim/Affidavit Submission

    In order for CBP to be able to comply with the statutory 
requirement to make the first payment in fiscal year 2007, all claims 
and affidavits for fiscal year 2007 distributions must be mailed to CBP 
and postmarked no later than July 1, 2007. Claims and affidavits for 
fiscal year 2008 distributions must be mailed to CBP and postmarked no 
later than March 1, 2008.

Address

    Claims and affidavits for distribution from the Pima Cotton Trust 
Fund, including any supporting documentation that may be subsequently 
requested by CBP, must be sent to: U.S. Customs and Border Protection, 
Office of International Trade, Summary and Account Management Division, 
Attention: Pima Cotton Trust Fund Unit, 1300 Pennsylvania Avenue, NW., 
Washington, DC 20229.

Affidavit Content

    Claimants are advised to note that sections 407(d) and (f) of the 
Act require each affidavit to contain a definitive statement regarding 
period of use, dollar amount or quantity, and supporting documentation. 
Claimants need not submit supporting documentation to CBP with their 
affidavits, but must maintain such documentation as they have affirmed 
to exist in their respective affidavits.

    Dated: May 21, 2007.
Deborah J. Spero,
Acting Commissioner, U.S. Customs and Border Protection.
 [FR Doc. E7-10090 Filed 5-24-07; 8:45 am]
BILLING CODE 9111-14-P