[Federal Register Volume 89, Number 135 (Monday, July 15, 2024)]
[Proposed Rules]
[Pages 57368-57372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15138]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 / 
Proposed Rules  

[[Page 57368]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1222

[Doc. No. AMS-SC-23-0080]


Paper and Paper-Based Packaging Promotion, Research and 
Information Order; Clarifying Changes

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) proposes multiple 
clarifying amendments to the Paper and Paper-Based Packaging Promotion, 
Research and Information Order (Order). The amendments include revising 
the definition of importer; adding a definition for partnership; 
clarifying the nominations process; clarifying language about in person 
and electronic voting for any Board meetings; updating the timing of 
financial reporting; and revising requirements for when exemptions can 
be requested. These actions would modify language in the Order to bring 
it up to date with current industry practices.

DATES: Comments must be received by August 14, 2024.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments may be mailed to the Docket 
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax: 
(202) 720-8938; or submitted electronically by Email: 
[email protected]; or via Federal e-rulemaking portal 
at https://www.regulations.gov. Comments should reference the document 
number and the date and page number of this issue of the Federal 
Register. All comments submitted in response to this proposed rule will 
be included in the rulemaking record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the internet at 
the address provided above. A plain language summary of this proposed 
rule is available at https://www.regulations.gov in the docket for this 
rulemaking.

FOR FURTHER INFORMATION CONTACT: Samantha Mareno, Agricultural 
Marketing Specialist, Market Development Division, Specialty Crops 
Program, Agricultural Marketing Service, U.S. Department of 
Agriculture, 1400 Independence Avenue SW, Room 1406-S, STOP 0244, 
Washington, DC 20250-0244; Telephone: (720) 827-4907; or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This proposed rule affecting the Order (7 
CFR part 1222) is authorized by the Commodity Promotion, Research, and 
Information Act of 1996 (Act) (7 U.S.C. 7411-7425).

Executive Orders 12866, 13563 and 14094

    AMS is issuing this proposed rule in conformance with Executive 
Orders 12866, 13563, and 14094. 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. Executive Order 14094 reaffirms, 
supplements, and updates Executive Order 12866 and further directs 
agencies to solicit and consider input from a wide range of affected 
and interested parties through a variety of means. This proposed rule 
is not a significant regulatory action within the meaning of Executive 
Order 12866. Accordingly, this action has not been reviewed by the 
Office of Management and Budget under section 6 of the Executive Order.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. AMS has assessed the impact of this proposed rule 
on Indian Tribes and determined that this proposed rule would not have 
Tribal implications that require consultation under Executive Order 
13175. AMS hosts a quarterly teleconference with Tribal leaders where 
matters of mutual interest regarding the marketing of agricultural 
products are discussed. Information about the proposed changes to the 
regulations will be shared during an upcoming quarterly call, and 
Tribal leaders will be informed about the proposed revisions to the 
regulation and the opportunity to submit comments. AMS will work with 
the USDA Office of Tribal Relations to ensure meaningful consultation 
is provided as needed with regard to these proposed changes to the 
Order.

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the 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 Act (7 U.S.C. 7418), a person subject to 
an order may file a written petition with the U.S. Department of 
Agriculture (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 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.

[[Page 57369]]

Background

    Under the Order, which became effective on January 23, 2014, the 
Paper and Packaging Board (Board), with oversight by USDA, administers 
a nationally coordinated program of research, promotion and information 
designed to strengthen the paper and paper-based packaging industry. 
The program covers four types of paper and paper-based packaging--
printing and writing paper (used to make products for printing, writing 
and other communication purposes), kraft packaging paper (used for 
products like grocery bags and sacks), containerboard (used to make 
corrugated boxes, shipping containers and related products), and 
paperboard (used for food and beverage packaging, tubes, and other 
miscellaneous products). The program is financed by assessments on 
domestic manufacturers and importers of paper and paper-based 
packaging.
    This proposed rulemaking would make multiple clarifying amendments 
to the Order. These amendments include revising the definition of 
importer; adding a definition for partnership; clarifying the 
nomination process; clarifying language about in person and electronic 
voting for any Board meetings; updating the timing of financial 
reporting; and revising requirements concerning when exemptions may be 
requested. The Board, which is composed of domestic manufacturers from 
across the country and importers, unanimously recommended the proposed 
changes to the Order on August 19, 2023. This action would modify 
language in the Order to bring it up to date with current industry 
practices.

Board Recommendation To Revise Order

    In subpart A of the Order, several sections would be revised to 
clarify terms for the Board and the paper and paper-based packaging 
industry. Section 1222.7 currently defines fiscal period and marketing 
year. Proposed section 1222.7 would revise fiscal period to fiscal year 
as the term is better understood by the industry. The definition of 
importer in Sec.  1222.8 would be revised to further clarify that 
importers are persons who import paper and paper-based packaging from 
outside the United States, that is subsequently released from custody 
by U.S. Customs and Border Protection (Customs) and introduced into the 
stream of commerce into the United States. Specifically, those persons 
are included who hold title of the foreign manufactured paper and 
paper-based packaging. The proposed revision is similar to the current 
definition of eligible importer in Sec.  1222.101 (f) of Subpart B--
Referendum Procedures.
    Sections 1222.12 and 1222.13 currently include the term produce and 
producer respectively in the definition of manufacture and 
manufacturer. The term produce and producer are not used in the paper 
and paper-based packaging industry. Therefore, this proposed rule would 
remove these terms from the definition of manufacture and manufacturer.
    Lastly, a new term for partnership would be added at Sec.  1222.19 
to state that a partnership includes, but is not limited to, spouses 
and joint ventures. This change is intended to clarify who is 
responsible for paying assessments. With this change, the existing 
sections 1222.19 through 1222.29 would be renumbered.
    Section 1222.41 currently outlines the Board nominations and 
appointments process. Section 1222.41(c)(1) would be updated to clarify 
the process for conducting outreach and specifically issue a call for 
nominations to all current manufacturers and importers who have paid 
assessments during the prior fiscal year. Furthermore, section 
1222.41(c)(4) and (c)(5) would be amended to remove repetitive 
language. Lastly, section 1222.41(c)(10) would be changed to specify 
that no two members shall be employed by a single manufacturer or 
importer that pays assessments under the Order to avoid confusion as to 
who can serve on the Board.
    Section 1222.43(a) allows the Secretary to remove a Board member or 
employee for failure or refusal to perform their duties, per the 
Board's recommendation. This would be revised to remove the employee 
clause to be consistent with language in other research and promotion 
orders.
    Section 1222.44 outlines the Board's procedures for conducting 
Board meetings. Section 1222.44(c) currently states that votes shall be 
cast in person at an assembled meeting. Additionally, section 1222.44 
(d) allows for other means of voting in lieu of voting at an assembled 
meeting. Both sections would be revised to include options for 
electronic voting, or other means.
    Section 1222.47 outlines prohibited activities for the Board. 
Section 1222.47(c) currently states no program, plan or project 
including advertising shall be false, misleading, or disparaging to 
another agriculture commodity. To be consistent in writing style, the 
proposed language would be modified to state any program, plan or 
project including advertising that is false, misleading, or disparaging 
to another agriculture commodity. This section would be updated to 
ensure clarity in wording.
    Section 1222.50(i) outlines the operating monetary reserve for the 
Board and states that the funds in the reserve may not exceed one 
fiscal year's budget of expenses. This would be revised to increase the 
funds in the reserve so they may not exceed two fiscal years, which is 
consistent with other research and promotion orders.
    Section 1222.51(b) describes when financial statements are to be 
submitted to the Department. The current timeframe is 30 days after the 
time period to which it applies, which is too restrictive because the 
Board reports financial statements on a quarterly basis. Therefore, 
this paragraph would be updated to specify that the financial 
statements are to be submitted quarterly and no later than 70 days 
after the period to which it applies.
    Section 1222.51(c) refers to the annual financial statement that is 
submitted to the Department. Currently, the annual financial statement 
is due to the Department within 90 days after the end of the fiscal 
year. The Board has had difficulty in meeting this short deadline. 
Therefore, this rule would extend the timeframe to no later than 120 
days to allow the Board more time to submit the statement to the 
Department.
    Section 1222.52(e) currently states that importers of paper and 
paper-based packaging shall pay assessments through Customs to the 
Board. Customs does not currently collect import assessments for the 
Board and therefore, paragraph (e) would be revised by deleting 
``through Customs'', instead stating that each importer shall pay their 
assessment to the Board.
    Section 1222.52(f) would also be revised by deleting the current 
language stating Customs collects assessments. Since Customs does not 
collect the assessment, the paragraph would be revised to state that 
each importer is responsible for paying assessments directly to the 
Board.
    Section 1222.53(a)(1) currently specifies the minimum quantity 
necessary to be eligible for an exemption from assessments and requires 
manufacturers to apply for an exemption prior to the start of the 
marketing year. The rule would remove this requirement, allowing them 
to apply for an exemption at any time during a marketing year, not just 
before the year starts.
    Section 1222.53(a)(2) (iii) provides that importers' assessments 
are collected by Customs and the Board shall refund the importer who 
has filed for exemption. Because Customs doesn't

[[Page 57370]]

collect assessments, this section would be updated to reflect that the 
importer would pay the Board directly.
    Section 1222.53(a)(5) currently details how the quantity of paper 
and paper-based packaging counts towards an exemption. This paragraph 
would be revised to ensure that in determining whether a manufacturer 
or import qualifies for the exemption, the combined quantity of all 
paper and paper-based packaging manufactured or imported during a 
marketing year shall count towards the 100,000 short ton exemption.
    Section 1222.81(2) refers to the frequency of referenda and 
outlines the criteria for continuation. This section would be updated 
to clarify that only eligible domestic manufacturers or eligible 
importers are included in the referendum voting. This change does not 
change who can vote and does not change voting restrictions.
    Section 1222.82(b) currently states that the Secretary has the 
right to suspend or terminate the program whenever it is favored by the 
industry. This section would be updated to make the language used more 
concise to avoid confusion by the industry.
    Definitions in Section 1222.101 would be updated to be consistent 
with terms defined in Subpart A. Specifically, paragraph (e) currently 
includes producer in the definition for eligible domestic manufacturer. 
This section would be revised to remove the word producer. Paragraph 
(i) currently includes the term produce in the definition of 
manufacture and would be revised to remove the term produce from the 
definition.
    Lastly, section 1222.102(a) currently outlines the voting 
eligibility of domestic manufacturers and importers. This section would 
be revised to include clarifying language to avoid confusion in the 
eligibility.

Initial Regulatory Flexibility Act Analysis

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered the 
economic impact of this action on small entities that would be affected 
by this rule. The purpose of the RFA is to fit regulatory action to 
scale of businesses subject to such action so that small businesses 
will not be disproportionately burdened. Manufacturers and importers 
would be considered agricultural service firms. The Small Business 
Administration defines small agricultural service firms as those having 
annual receipts of no more than $30 million (13 CFR part 121).
    According to the Board, there are approximately 47 manufacturers in 
the United States that manufacture the types of paper and paper-based 
packaging covered under the Order. Using an average price of $1,350 per 
short ton,\1\ a manufacturer who manufactures less than 22,220 short 
tons of paper and paper-based packaging per year would be considered a 
small entity. The Board estimated that no entity manufactured less than 
22,220 short tons in 2022; thus, no domestic manufacturers would be 
considered small businesses.
---------------------------------------------------------------------------

    \1\ No domestic market pricing information for paper and paper-
based packaging was publicly available; instead, average prices were 
estimated using export data from the U.S. Census Bureau.
---------------------------------------------------------------------------

    Based on Customs data, there were 3,272 importers of paper and 
paper-based packaging in 2022. Of these, 40 importers, or 1 percent, 
had annual receipts of more than $30 million of paper and paper-based 
packaging. Thus, the majority of importers would be considered small 
entities.
    This proposed rule would make multiple clarifying changes to the 
Order. The changes include revising the definition of importer; adding 
a definition for partnership; clarifying the nominations process; 
clarifying language about in person and electronic voting for any Board 
meetings; updating the timing of financial reporting; and revising 
requirements concerning when exemptions will be requested.
    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 previously under OMB 
control number 0581-0093. This proposed rule would not result in a 
change to the information collection and recordkeeping requirements 
previously approved and would impose no additional reporting and 
recordkeeping burden on domestic manufacturers and importers of paper 
and paper-based packaging.
    As with all Federal research and promotion programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. AMS has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this proposed 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 alternatives, the Board considered not making the 
clarifying changes to the Order and leaving it as it is currently. The 
Board decided against leaving the Order unchanged as confusion would 
continue and potentially worsen over time. Therefore, that alternative 
was rejected.
    Regarding outreach efforts, the Board determined that making these 
proposed changes would clarify the issues and answer questions that 
have arisen over the last eight years and would help resolve similar 
questions in the future. This proposal was discussed by the Board in 
June and November 2022, and the full Board unanimously recommended the 
changes on August 19, 2023. AMS has performed this initial RFA analysis 
regarding the impact of this action on small entities and invites 
comments concerning potential effects of this action.
    While this proposed rule as set forth below has not yet received 
the approval of AMS, it has been determined that it is consistent with 
and would effectuate the purposes of the Order. A 30-day comment period 
is provided to allow interested persons to respond to this proposal. 
All written comments received in response to this proposed rule by the 
date specified will be considered prior to finalizing this action.

List of Subjects in 7 CFR Part 1222

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Paper and paper-based packaging 
promotion, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service proposes to amend 7 CFR part 1222 as follows:

PART 1222--PAPER AND PAPER-BASED PROMOTION, RESEARCH AND 
INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1222 continues to read as 
follows:

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

0
2. In Sec.  1222.7, revise to read as follows:


Sec.  1222.7  Fiscal year and marketing year.

    Fiscal year and marketing year means the 12-month period ending on 
December 31 or such other period as recommended by the Board and 
approved by the Secretary.
0
3. In Sec.  1222.8, revise to read as follows:

[[Page 57371]]

Sec.  1222.8  Importer.

    Importer means any person who imports paper and paper-based 
packaging from outside the United States for sale in the United States 
as a principal or as an agent, broker, or consignee of any person who 
manufactures paper and paper-based packaging outside the United States 
for sale in the United States, and who is listed in the import records 
as the importer of record for such paper and paper-based packaging. 
Importation occurs when paper and paper-based packaging manufactured 
outside of the United States is released from custody by Customs and 
introduced into the stream of commerce in the United States. Included 
are persons who hold title to foreign-manufactured paper and paper-
based packaging immediately upon release by Customs, as well as any 
persons who act on behalf of others, as agents or brokers, to secure 
the release of paper and paper-based packaging from Customs when such 
paper and paper-based packaging is entered or withdrawn for use in the 
United States.
0
4. In Sec.  1222.12, revise to read as follows:


Sec.  1222.12  Manufacture.

    Manufacture means the process of transforming pulp into paper and 
paper-based packaging.
0
5. In Sec.  1222.13, revise to read as follows:


Sec.  1222.13  Manufacturer.

    Manufacturer means any person who manufactures paper and paper-
based packaging in the United States.


Sec. Sec.  1222.19 through 1222.29  [Redesignated as Sec. Sec.  1222.20 
through 1222.30]

0
6. Redesignate Sec. Sec.  1222.19 through 1222.29 as Sec. Sec.  1222.20 
through 1222.30, respectively.
0
7. Add new Sec.  1222.19 to read as follows:


Sec.  1222.19  Partnership.

    Partnership includes, but is not limited to:
    (a) Spouses who have title to, or leasehold interest in, a paper 
and paper-based packaging manufacturing entity as tenants in common, 
joint tenants, tenants by the entirety, or, under community property 
laws, as community property; and
    (b) So called ``joint ventures'' wherein one or more parties to an 
agreement, informal or otherwise, contributed land, facilities, 
capital, labor, management, equipment, or other services, or any 
variation of such contributions by two or more parties, that results in 
the manufacturing or importation of paper and paper-based packaging and 
the authority to transfer title to the paper and paper-based packaging 
so manufactured or imported.
0
8. In Sec.  1222.41, revise paragraphs (c)(1), (c)(4), (c)(5) and 
(c)(10) to read as follows:


Sec.  1222.41  Nominations and appointments.

* * * * *
    (c) * * *
    (1) The Board shall issue a call for nominations and conduct 
outreach to all current manufacturers and importers who paid 
assessments during the prior fiscal year. Manufacturers and importers 
may submit nominations to the Board;
* * * * *
    (4) For domestic seats allocated by region, domestic manufacturers 
must manufacture paper and paper-based packaging in the region for 
which they seek nomination. Nominees that manufacture in both regions 
may seek nomination in one region of their choice;
    (5) Nominees that are both a manufacturer and an importer may seek 
nomination to the board either as a manufacturer or as an importer so 
long as they meet the qualifications;
* * * * *
    (10) No two members shall be employed by a single manufacturer or 
importer that pays assessments under this Order; and,
* * * * *
0
9. In Sec.  1222.43, revised paragraph (a) to read as follows:


Sec.  1222.43  Removal and vacancies.

    (a) The Board may recommend to the Secretary that a member be 
removed from office if the member consistently fails or refuses to 
perform his or her duties properly or engages in dishonest acts or 
willful misconduct. If the Secretary determines that any person 
appointed under this subpart consistently fails or refuses to perform 
his or her duties properly or engages in acts of dishonesty or willful 
misconduct, the Secretary shall remove the person from office. A person 
appointed under this subpart may be removed by the Secretary if the 
Secretary determines that the person's continued service would be 
detrimental to the purposes of the Act.
* * * * *
0
10. In Sec.  1222.44, revise paragraphs (c) and (d) to read as follows:


Sec.  1222.44  Procedure.

* * * * *
    (c) The Board and related committees may conduct meetings by any 
means of communication available, electronic or otherwise, that 
effectively assembles the required participants and facilitates open 
communication. Eligible participants may vote by any means of 
communication available, electronic or otherwise; provided that votes 
cast are verifiable and that a quorum and other procedural requirements 
are met.
    (d) In lieu of voting at an assembled meeting and, when in the 
opinion of the chairperson of the Board such action is considered 
necessary, the Board may take action if supported by a majority of 
members (unless a two-thirds majority is required under the Order) by 
any means of communication available, electronic or otherwise. In that 
event, all members must be notified and provided the opportunity to 
vote. Any action so taken shall have the same force and effect as 
though such action had been taken at an assembled meeting. All votes 
shall be recorded in Board minutes.
* * * * *
0
11. In Sec.  1222.47, revise paragraph (c) to read as follows:


Sec.  1222.47  Prohibited activities.

* * * * *
    (c) Any program, plan or project including advertising that is 
false, misleading, or disparaging to another agricultural commodity. 
Paper and paper-based packaging of all geographic origins shall be 
treated equally.
0
12. In Sec.  1222.50, revise paragraph (i) to read as follows:


Sec.  1222.50  Budget and expenses.

* * * * *
    (i) The Board may establish an operating monetary reserve and may 
carry over to subsequent fiscal years excess funds in any reserve so 
established: Provided, that, the funds in the reserve do not exceed two 
fiscal year's budget of expenses. Subject to approval by the Secretary, 
such reserve funds may be used to defray any expenses authorized under 
this subpart.
* * * * *
0
13. In Sec.  1222.51, revise paragraphs (b) and (c) to read as follows:


Sec.  1222.51  Financial statements.

* * * * *
    (b) Each quarterly financial statement shall be submitted to the 
Department no later than 70 calendar days after the period to which it 
applies.
    (c) The Board shall submit to the Department an audited annual 
financial statement no later than 120 calendar days after the end of 
the fiscal year to which it applies.
0
14. In Sec.  1222.52, revise the introductory text of paragraph (e), 
and paragraph (f) to read as follows:

[[Page 57372]]

Sec.  1222.52  Assessments.

* * * * *
    (e) Each importer of paper and paper-based packaging shall pay to 
the Board an assessment on the paper and paper-based packaging imported 
into the United States identified in the Harmonized Tariff Schedule of 
the United States (HTSUS) number listed in the following table. In the 
event that any HTSUS number subject to assessment is changed and such 
change is merely a replacement of a previous number and has no impact 
on the description of the paper and paper-based packaging involved, 
assessments will continue to be collected based on the new number.
* * * * *
    (f) Each importer is responsible for paying the assessment directly 
to the Board within 30 calendar days after the end of the quarter in 
which the paper and paper-based packaging was imported.
* * * * *
0
15. Sec.  1222.53, revise paragraphs (a)(1), (2)(iii) and (5) to read 
as follows:


Sec.  1222.53  Exemption from assessment.

    (a) Minimum quantity exemption. (1) Manufacturers that manufacture 
less than 100,000 short tons of paper and paper-based packaging in a 
marketing year are exempt from paying assessments. Such manufacturers 
must apply to the Board, on a form provided by the Board, for a 
certificate of exemption. This is an annual exemption and manufacturers 
must reapply each year. Such manufacturers shall certify that they will 
manufacture less than 100,000 short tons of paper and paper-based 
packaging during the marketing year for which the exemption is claimed. 
Upon receipt of an application for exemption, the Board shall determine 
whether an exemption may be granted. The Board may request past 
manufacturing data to support the exemption request. The Board will 
issue, if deemed appropriate, a certificate of exemption to the 
eligible manufacturer. It is the responsibility of the manufacturer to 
retain a copy of the certificate of exemption.
    (2) * * *
    (iii) The Board shall refund to such importers considered exempt 
assessments that the importer paid to the Board no later than 60 
calendar days after the Board receives such assessments. The Board will 
stop refund of assessments to such importers who during the marketing 
year import more than 100,000 short tons of paper and paper-based 
packaging. These importers will be notified accordingly. No interest 
shall be paid on the assessments collected by the Board.
* * * * *
    (5) In calculating whether a manufacturer or importer qualifies for 
an exemption, the combined quantity of all paper and paper-based 
packaging manufactured or imported by the manufacturer or importer 
during a marketing year shall count towards the 100,000 short-ton 
exemption.
* * * * *
0
16. In Sec.  1222.81, revise paragraphs (b)(2) to read as follows:


Sec.  1222.81  Referenda.

* * * * *
    (b) * * *
    (2) Not later than seven years after this Order becomes effective 
and every seven years thereafter, to determine whether manufacturers 
and importers favor the continuation of the Order. The Order shall 
continue if it is favored by a majority of manufacturers and importers 
voting in the referendum who, during a representative period determined 
by the Secretary, are each an eligible domestic manufacturer or an 
eligible importer and who also represent a majority of the volume of 
paper and paper-based packaging represented in the referendum;
* * * * *
0
17. In Sec.  1222.82, revise paragraph (b) to read as follows:


Sec.  1222.82  Suspension or termination.

* * * * *
    (b) The Secretary shall suspend or terminate this subpart at the 
end of the fiscal year whenever the Secretary determines that its 
suspension or termination is favored by a majority of manufacturers and 
importers voting in the referendum who, during a representative period 
determined by the Secretary, are each an eligible domestic manufacturer 
or an eligible importer and who also represent a majority of the volume 
of paper and paper-based packaging represented in the referendum;
* * * * *
0
18. In Sec.  1222.101, revise paragraph (e) and (i) to read as follows:

Subpart B--Referendum Procedures


Sec.  1222.101  Definitions.

* * * * *
    (e) Eligible domestic manufacturer means any person who is 
currently a domestic manufacturer and who manufactured 100,000 short 
tons or more of paper and paper-based packaging during the 
representative period.
* * * * *
    (i) Manufacture means the process of transforming pulp into paper 
and paper-based packaging.
* * * * *
0
19. In Sec.  1222.102, revise paragraph (a) to read as follows:


Sec.  1222.102  Voting.

    (a) Each eligible domestic manufacturer and importer of paper and 
paper-based packaging shall be entitled to cast only one ballot in the 
referendum. However, each domestic manufacturer in a landlord/tenant 
relationship or a divided ownership arrangement involving totally 
independent entities cooperating only to manufacture paper and paper-
based packaging, in which more than one of the parties is a domestic 
manufacturer or importer, shall be entitled to cast one ballot in the 
referendum covering only such domestic manufacturer or importer's share 
of ownership.
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-15138 Filed 7-12-24; 8:45 am]
BILLING CODE P