[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Rules and Regulations]
[Pages 46789-46791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19325]



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 Rules and Regulations
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  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / 
Rules and Regulations  

[[Page 46789]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1208

[Document Number AMS-FV-14-0042]


Processed Raspberry Promotion, Research, and Information Order; 
Late Payment and Interest Charges on Past Due Assessments

AGENCY: Agricultural Marketing Service.

ACTION: Final rule.

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SUMMARY: This rule prescribes late payment and interest charges on past 
due assessments under the Processed Raspberry Promotion, Research, and 
Information Order (Order). The Order is administered by the National 
Processed Raspberry Council (Council) with oversight by the U.S. 
Department of Agriculture (USDA). Under the Order, assessments are 
collected from domestic producers and importers and used for research 
and promotion projects designed to maintain and expand the market for 
processed raspberries. This rule implements authority contained in the 
Order that allows the Council to collect late payment and interest 
charges on past due assessments. Three additional changes are being 
made to reflect current practices and update the Order and regulations. 
The changes will contribute to effective administration of the program 
and were unanimously recommended by the Council.

DATES: Effective: September 8, 2015.

FOR FURTHER INFORMATION CONTACT: Tarun Harit, Program Management 
Specialist, Promotion and Economics Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., Room 1406-S, Stop 
0244, Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile 
(202) 205-2800; or electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under the Order (7 CFR 
part 1208). The Order is authorized under the Commodity Promotion, 
Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation will not 
have substantial and direct effects on Tribal governments and will not 
have significant Tribal implications.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect 
or preempt any other Federal or State law authorizing promotion or 
research relating to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    This rule prescribes late payment and interest charges on past due 
assessments under the Order. The Order is administered by the Council 
with oversight by USDA. Under the Order, assessments are collected from 
domestic producers and importers and used for research and promotion 
projects designed to maintain and expand markets for processed 
raspberries. Processed raspberries include raspberries that have been 
frozen, dried, pureed, made into juice, or altered by mechanical 
processes. This rule implements authority contained in the Order and 
the 1996 Act that allows the Council to collect late payment and 
interest charges on past due assessments. This action was unanimously 
recommended by the Council and will contribute to effective 
administration of the program.
    Section 1208.52(a) of the Order specifies that the funds to cover 
the Council's expenses shall be paid from assessments on producers and 
importers, donations from persons not subject to assessments, and from 
other funds available to the Council. Paragraph (b) specifies that the 
collection of assessments on domestic processed raspberries is the 
responsibility of the first receiving handler of the raspberries for 
processing. Section 1208.52(e) specifies that ``a late payment charge 
shall be imposed on any handler or importer who fails to remit to the 
Council, the total amount for which any such first handler or importer 
is liable on or before the due date established by the Council. In 
addition to the late payment charge, an interest charge shall be 
imposed on the outstanding amount for which the first handler or 
importer is liable. The rate of interest shall be

[[Page 46790]]

prescribed in regulations issued by the Secretary.''
    The Order was implemented in May 2012. Assessment collection began 
in September 2012. Domestic assessments are due to the Council once 
annually by October 31. Import assessments are collected monthly by the 
U.S. Customs and Border Protection (Customs). If Customs does not 
collect the assessment, the importer must pay the assessment directly 
to the Council. Entities that produce less than 20,000 pounds of 
raspberries for processing annually or import less than 20,000 pounds 
of processed raspberries annually are exempt from assessment.
    Assessment funds are used by the Council for activities designed to 
benefit all industry members. Thus, it is important that all assessed 
entities pay their assessments in a timely manner. Entities who fail to 
pay their assessments on time could reap the benefits of Council 
programs at the expense of others. In addition, they could utilize 
funds for their own use that should otherwise be paid to the Council to 
finance Council programs.

Council Recommendation

    Thus, the Council met on January 15, 2014, and unanimously 
recommended specifying rates of late payment charges and interest on 
past due assessments in the Order's regulations. Specifically, the 
Council recommended that a late payment charge be imposed on any 
handler or importer who fails to make timely remittance to the Council 
of the total assessments for which the handler or importer is liable. 
The late payment will be imposed on any assessments not received within 
30 calendar days of the date they are due. This will be a one-time late 
payment charge equal to 10 percent of the assessments due before 
interest charges have accrued. The Council also recommended that 1 
percent per month interest on the outstanding balance, including any 
late payment and accrued interest, be added to any accounts for which 
payment has not been received within 30 calendar days after the date 
assessments are due. Interest will continue to accrue monthly until the 
unpaid balance is paid to the Council.
    This action will help facilitate program administration by 
providing an incentive for entities to remit assessments in a timely 
manner, with the intent of creating a fair and equitable process among 
all assessed entities. Accordingly, a new Subpart C is added to the 
Order for Provisions Implementing the Processed Raspberry Order, and a 
new section 1208.520 is added to Subpart C. (The proposed rule 
published on November 12, 2014 (79 FR 67 67103) concerning this action 
has been modified to revise the name of the new Subpart C to meet 
Federal Register guidelines.)
    This rule also makes three additional changes to the Order. It 
revises the terms crop and fiscal years as defined in sections 1208.3 
and 1208.7, respectively. The crop and fiscal years are changed in the 
Order from the 12-month period April 1 through March 31 to October 1 
through September 30. The new time frames help facilitate program 
operations because domestic assessments are due by October 31, so those 
funds can be used to support current year activities. Revising the 
terms will bring the Order in line with current practices.
    This rule also changes the OMB control numbers in sections 1208.78 
and 1208.108. In section 1208.78, the OMB control number 0581-0257 is 
omitted because it is no longer relevant. In sections 1208.108, the OMB 
control number is changed from 0581-NEW to 0581-0093, the control 
number assigned by the OMB.

Final Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the rule on small 
entities. Accordingly, AMS has considered the economic impact of this 
action on such entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(first handlers and importers) as those having annual receipts of no 
more than $7.0 million.
    According to the Council, it is estimated that there are 160 
producers of raspberries for processing and 30 first handlers of 
processed raspberries in the United States. Dividing the processed 
raspberry crop value for 2013 reported by the National Agricultural 
Statistics Service (NASS) of $60,883,000 \1\ by the number of producers 
yields an average annual producer revenue of $380,520. It is estimated 
that in 2013, 75 percent of first handlers shipped under $7.0 million 
worth of processed raspberries.
---------------------------------------------------------------------------

    \1\ Noncitrus Fruits and Nuts 2013 Summary, July 2014, USDA, 
National Agricultural Statistics Service, p. 37.
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    Likewise, based on Customs data, it is estimated there are 140 
importers of processed raspberries. Using 2013 Customs data, nearly all 
importers, or 99 percent, import less than $7.0 million worth of 
processed raspberries annually. Thus, the majority of domestic 
producers, first handlers and importers of processed raspberries would 
be considered small entities.
    Regarding the value of the commodity, as mentioned above, based on 
2013 NASS data, the value of the domestic processed raspberry crop was 
about $61 million. According to Customs data, the value of 2013 imports 
was about $65 million.
    This rule prescribes late payment and interest charges on past due 
assessments under the Order. The Order is administered by the Council 
with oversight by USDA. Under the Order, assessments are collected from 
domestic producers of raspberries for processing and importers of 
processed raspberries. Processed raspberries include raspberries that 
have been frozen, dried, pureed, made into juice, or altered by 
mechanical processes. This rule adds a new section 1208.520 that will 
specify a late payment charge of 10 percent of the assessments due and 
interest at a rate of 1 percent per month on the outstanding balance, 
including any late payment and accrued interest. This section will be 
included in a new Subpart C--Provisions for Implementing the Processed 
Raspberry Promotion, Research, and Information Order. This action was 
unanimously recommended by the Council and is authorized under section 
1208.52(e) of the Order and section 517(e) of the 1996 Act.
    Regarding the economic impact of this rule on affected entities, 
this action imposes no costs on handlers and importers who pay their 
assessments on time. It merely provides an incentive for entities to 
remit their assessments in a timely manner. For all entities who are 
delinquent in paying assessments, both large and small, the charges 
will be applied the same. As for the impact on the industry as a whole, 
this action will help facilitate program administration by providing an 
incentive for entities to remit their assessments in a timely manner, 
with the intent of creating a fair and equitable process among all 
assessed entities.
    Additionally, as previously mentioned, the Order provides for an 
exemption for entities that produce or import less than 20,000 pounds 
of processed raspberries annually. About 140 producers of raspberries 
for processing and 80 importers of

[[Page 46791]]

processed raspberries pay assessments under the Order.
    Regarding alternatives, one option to the proposed action would be 
to maintain the status quo and not prescribe late payment and interest 
charges for past due assessments. However, the Council determined that 
implementing such charges will help facilitate program administration 
by encouraging entities to pay their assessments in a timely manner. 
The Council reviewed rates of late payment and interest charges 
prescribed in other research and promotion programs and concluded that 
a 10 percent late payment charge and interest at a rate of 1 percent 
per month on the outstanding balance would be appropriate.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
that are imposed by the Order have been approved under OMB control 
number 0581-0093. This rule results in no change to the information 
collection and recordkeeping requirements previously approved and 
imposes no additional reporting and recordkeeping burden on domestic 
producers, first handlers, and importers of processed raspberries.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. Finally, USDA has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Regarding outreach efforts, the Council met on January 15, 2014, 
and unanimously made its recommendation. All of the Council's meetings, 
including meetings held via teleconference, are open to the public and 
interested persons are invited to participate and express their views.
    As previously mentioned, a proposed rule concerning this action was 
published in the Federal Register on November 12, 2014 (79 FR 67103). 
The proposal was made available through the Internet by USDA and the 
Office of the Federal Register. A 30-day comment period ending December 
12, 2014 was provided to allow interested persons to submit comments. 
No comments were received. One change was made to section 1208.520(2) 
for clarification purposes, the addition of the word ``charge'' after 
the words ``late payment''.
    After consideration of all relevant matters presented, including 
the information and recommendation submitted by the Council and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, is consistent with and will effectuate the 
purposes of the 1996 Act.

List of Subjects in 7 CFR Part 1208

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Raspberry promotion, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1208 is 
amended as follows:

PART 1208--PROCESSED RASPBERRY PROMOTION, RESEARCH, AND INFORMATION 
ORDER

0
1. The authority citation for 7 CFR part 1208 continues to read as 
follows:

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.


0
2. Section 1208.3 is revised to read as follows:


Sec.  1208.3  Crop year.

    Crop year means the 12-month period from October 1 through 
September 30 or such other period approved by the Secretary.

0
3. Section 1208.7 is revised to read as follows:


Sec.  1208.7  Fiscal period.

    Fiscal period means the 12-month period from October 1 through 
September 30 or such other period as approved by the Secretary.

0
4. Section 1208.78 is revised to read as follows:


Sec.  1208.78  OMB control numbers.

    The control number assigned to the information collection 
requirements by the Office of Management and Budget pursuant to the 
Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, is OMB control 
number 0505-0001, and OMB control number 0581-0093.

0
5. Section 1208.108 is revised to read as follows:


Sec.  1208.108  OMB control number.

    The control number assigned to the information collection 
requirement in this subpart by the Office of Management and Budget 
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, 
is OMB control number 0581-0093.

0
6. Add Subpart C, consisting of Sec.  1208.520, to read as follows:

Subpart C--Provisions Implementing the Processed Raspberry 
Promotion, Research, and Information Order


Sec.  1208.520  Late payment and interest charges for past due 
assessments.

    (a) A late payment charge shall be imposed on any handler or 
importer who fails to make timely remittance to the Council of the 
total assessments for which such handler or importer is liable. The 
late payment will be imposed on any assessments not received within 30 
calendar days of the date they are due. This one-time late payment 
charge shall be 10 percent of the assessments due before interest 
charges have accrued.
    (b) In addition to the late payment charge, 1 percent per month 
interest on the outstanding balance, including any late payment charge 
and accrued interest, will be added to any accounts for which payment 
has not been received by the Council within 30 calendar days after the 
date the assessments are due. Such interest will continue to accrue 
monthly until the outstanding balance is paid to the Council.

    Dated: August 3, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-19325 Filed 8-5-15; 8:45 am]
 BILLING CODE 3410-02-P