[Federal Register Volume 89, Number 246 (Monday, December 23, 2024)]
[Rules and Regulations]
[Pages 104394-104398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30268]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1210
[Doc. No. AMS-SC-24-0020]
Watermelon Research and Promotion Plan; Increased Assessment Rate
AGENCY: Agricultural Marketing Service (AMS), Department of Agriculture
(USDA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule implements a recommendation from the National
Watermelon Promotion Board to increase the assessment rate from six
cents per hundredweight to nine cents per hundredweight. Domestic
watermelon producers of 10 acres or more and domestic first handlers of
watermelons will each pay four and a half cents per hundredweight, and
importers of 150,000 pounds or more annually of watermelons will pay
nine cents per hundredweight. This final rule also amends current
regulatory language to correct non-substantive and typographical
errors.
DATES: This rule is effective January 22, 2025.
FOR FURTHER INFORMATION CONTACT: William Hodges, Marketing Specialist,
Mid-Atlantic Region Branch, Market Development Division, Specialty
Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 1406-S,
STOP 0244, Washington, DC 20250-0244; Telephone: (443) 571-8456; or
Email: [email protected].
SUPPLEMENTARY INFORMATION: This final rule affecting the Watermelon
Research and Promotion Plan (7 CFR part 1210) (Plan) is authorized
under the Watermelon Research and Promotion Act (7 U.S.C. 4901-4916)
(Act).
Executive Orders 12866, 13563, and 14094
USDA is issuing this 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 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 sec. 6 of the Executive order.
Executive Order 13175
This action was reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, which requires agencies to consider whether their
rulemaking actions will have Tribal implications. AMS has determined
that this rule is unlikely to have substantial direct effects on one or
more Indian Tribes, or the relationship between the Federal Government
and Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
Executive Order 12988
This rule was reviewed under Executive Order 12988, Civil Justice
Reform. It is not intended to have retroactive effect. The Act provides
that it shall not affect or preempt any other Federal or State law
authorizing promotion or research relating to an agricultural
commodity.
Under sec. 1650 of the Act (7 U.S.C. 4909), a person may file a
written petition with the Secretary of Agriculture (Secretary) if they
believe that the Plan, any provision of the Plan, or any obligation
imposed in connection with the Plan, is not in accordance with the law.
In any petition, the person may request a modification of the Plan or
an exemption from the Plan. The petitioner will have the opportunity
for a hearing on the petition. Afterwards, an Administrative Law Judge
(ALJ) will issue a decision. If the petitioner disagrees with the ALJ's
ruling, the petitioner has 30 days to appeal to the Judicial Officer,
who will issue a ruling on behalf of the Secretary. If the petitioner
disagrees with the Secretary's ruling, the petitioner may file, within
20 days, an appeal in the U.S. District
[[Page 104395]]
Court for the district where the petitioner resides or conducts
business.
Background
Under the Plan, the National Watermelon Promotion Board (Board)
administers a nationally coordinated program of research, development,
advertising, and promotion designed to strengthen the position of
watermelons in the marketplace, and to establish, maintain, and expand
markets for watermelons. To administer the program, Sec. Sec. 1210.328
and 1210.341 of the Plan authorize the Board, with the approval of AMS,
to formulate an annual budget of expenses and collect assessments on
domestic producers growing 10 acres or more of watermelons, domestic
first handlers of watermelons, and importers of 150,000 or more pounds
of watermelons per year. The Board is familiar with both the program's
needs and the rising costs of research and promotion initiatives and is
able to formulate an appropriate budget and assessment rate.
This final rule increases the assessment rate from six to nine
cents per hundredweight of watermelons. Domestic watermelon producers
of 10 acres or more and domestic first handlers of watermelons will
each pay four and a half cents per hundredweight, and importers of
150,000 pounds or more annually of watermelons will pay nine cents per
hundredweight. The Plan specifies that handlers are responsible for
collecting and submitting both the producer and handler assessments to
the Board, reporting their handling of watermelons, and maintaining
records necessary to verify their reporting(s). Importers are
responsible for payment of assessments to the Board on watermelons
imported into the United States through the U.S. Customs Service and
Border Protection.
Adjustment to the Assessment Rate
This final rule amends Sec. 1210.515 of the Plan by increasing the
assessment rate from six cents per hundredweight to nine cents per
hundredweight. The assessment on domestic watermelon producers of 10
acres or more and domestic first handlers of watermelons increases from
three cents per hundredweight to four and a half cents per
hundredweight, and the assessment on importers of 150,000 pounds or
more annually of watermelons increases from six cents per hundredweight
to nine cents per hundredweight. The Board recommended increasing the
assessment rate to address inflation's impact on buying power while
maintaining competitiveness in the marketplace.
The Board discussed this recommendation over several months at
various State and regional watermelon association meetings in addition
to presenting at a public town hall meeting on February 23, 2024, at
the National Watermelon Association's (NWA) annual convention. The
Board sent out postcards to all industry contacts in their database to
invite them to the NWA town hall meeting and provide information on the
potential assessment increase. The Board met on February 24, 2024, and
voted unanimously to propose the assessment increase. Board members
present for the vote represented domestic producers, first handlers,
and importers.
Since the Board's inception in 1989, the Board only raised the
assessment rate one other time, in 2008. From 2008 to 2023, according
to the Board, the United States experienced inflation of 43.7%, which
equates to 2.3% when compounded annually. This dollar devaluation
translates to a loss in buying power of roughly 30% since the previous
assessment increase was instituted. The erosion of buying power and
continued inflationary pressure on funds limits the Board's research
and promotion activities. The raised assessment rate further supports
the Board's goal of a balanced budget beginning in 2025, while still
allowing for increased research and promotion of watermelon across the
Board's communication, marketing, foodservice, and research committees.
Section 1210.341 of the Plan states, in part, that in the case of
an importer, the assessment shall be equal to the combined rate for
domestic producers and handlers and shall be paid by the importer at
the time of entry of the watermelons into the United States.
Accordingly, with the increased assessment rate of nine cents per
hundredweight, domestic watermelon producers of 10 acres or more and
domestic first handlers of watermelons will each pay four and a half
cents per hundredweight, and importers of 150,000 pounds or more
annually of watermelons will pay nine cents per hundredweight. This
assessment increase is consistent with sec. 1647(f) of the Act (7
U.S.C. 4906(f)), that permits changes in the assessment rate through
notice and comment procedures. Section 1210.341(b) of the Plan states
that assessment rates shall be fixed by the Secretary in accordance
with sec. 1647(f) of the Act (7 U.S.C. 4906(f)). Further, not more than
one assessment on a producer, handler, or importer may be collected on
any lot of watermelons. Accordingly, the final rule revises Sec.
1210.515(a) of the Plan to reflect the recommendation of the Board as
it relates to assessments.
Amending Regulatory Language
The final rule also includes changes to Sec. 1210.515(b) of the
Plan to amend language and make non-substantive corrections to the
text. These edits are administrative changes and will have no impact on
the assessment rate. This final rule amends the misspelling of
``scheudle'' to ``schedule''; amends ``U.S. Customs Service (USCS)'' to
``U.S. Customs Service and Border Protection (Customs)''; amends
``USCS'' to ``Customs'', and amends ``of any other'' to ``or any
other''. The final rule also adds clarifying language and amends ``may
submit the Board'' to ``may submit to the Board''.
Final Regulatory Flexibility Act and Paperwork Reduction 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 the small producers, handlers, and importers
that will be affected by this final rule. The purpose of the RFA is to
fit regulatory action to scale on businesses subject to such action so
that small businesses will not be disproportionately burdened.
Domestic producers of less than 10 acres of watermelons are exempt
from this program. Importers of less than 150,000 pounds of watermelons
per year are also exempt. According to the Board, there are
approximately 429 producers, 121 first handlers, and 183 importers who
are subject to the provisions of the Plan.
The Small Business Administration (SBA) defines, in 13 CFR part
121, small agricultural producers of watermelons as those having annual
receipts equal to or less than $3.75 million [NAICS code 111219--Other
Vegetable (except Potato) and Melon Farming] and small agricultural
service firms (handlers and importers) as those having annual receipts
equal to or less than $34.0 million [NAICS code-111514--Postharvest
Crop Activities (except Cotton Ginning)]. Under these definitions, the
majority of the producers, handlers, and importers that will be
affected by this final rule will be considered small entities. This
conclusion is based on the following computations and data, using the
Board's assessment rate of six cents per hundredweight.
For 2023, National Agricultural Statistics Service (NASS) reported
a season average producer price per pound of $0.214. The Board
estimated the Freight on Board (FOB) price to be
[[Page 104396]]
$0.284 for both importers and handlers in 2023. The Board reported that
2023 assessments received from domestic entities totaled $2.247
million, with equal proportions of $1.1235 million coming from
producers and handlers. Dividing $1.1235 million by half of the
assessment rate of $0.06 per hundredweight, as producers and handlers
evenly split the assessment, yields an estimate of total producer
pounds assessed of 3,745.0 million ($1.1235 million divided by $0.0003
per pound). Dividing the total pounds assessed quantity by 429
producers yields an average assessed pounds per producer estimate of
8.73 million. Multiplying the annual assessed pounds per producer
estimate of 8.73 million pounds by the 2023 NASS season average
producer price per pound of $0.214 yields an average annual watermelon
sales receipts per producer estimate of $1.87 million. This is well
below the SBA small producer size threshold of $3.75 million.
With an equal proportion of annual domestic assessments coming from
handlers, the total handler pounds assessed is also 3,745.0 million.
Dividing total handler pounds assessed by 121 handlers yields an
average assessed pounds per handler estimate of 30.95 million pounds.
Multiplying this estimate of annual assessed pounds per handler of
30.95 million pounds by the season average handler price per pound of
$0.284, provided by the Board, yields an estimate of average annual
watermelon sales receipts per handler of $8.79 million. This is well
below the SBA small handler size threshold of $34.0 million.
The Board reported that assessments received from importers totaled
$1.196 million in 2023. Dividing $1.196 million by the assessment rate
of $0.06 per hundredweight ($0.0006 per pound) yields an estimate of
total importer pounds assessed of 1,993.3 million. Dividing the total
pounds assessed by the number of importers, 183, yields an average
assessed pounds per importer estimate of 10.89 million. Multiplying
this estimate of annual assessed pounds per importer of 10.89 million
pounds by the season average importer price per pound of $0.284 yields
an estimate of average annual watermelon sales receipts per importer of
$3.09 million. This is well below the SBA small importer size threshold
of $34.0 million. Assuming normal distributions, the majority of
producers, handlers, and importers will be classified as small
businesses according to SBA size standards.
This final rule amends Sec. 1210.341 of the Plan to mandate that
domestic watermelon producers of 10 acres or more and domestic first
handlers of watermelon each pay an assessment rate of four and a half
cents per hundredweight, and importers of more than 150,000 pounds or
more annually of watermelons pay an assessment of nine cents per
hundredweight. Assessments under the program are used by the Board to
finance promotion, research, and educational programs designed to
increase consumer demand for watermelons in the United States and
international markets. This action is the first time the Board has
raised the assessment rate since 2008, and the second time the rate has
been raised since the program's inception in 1989. The Plan is
administered by the Board under the USDA supervision.
According to the Board, the increased assessment rate allows the
Board to sustain and expand the promotional, research, and
communications programs. The Board approved proposing the assessment
rate increase at its February 24, 2024, meeting. This assessment
increase is consistent with sec. 1647(f) of the Act (7 U.S.C. 4906(f))
that permits changes in the assessment rate through notice and comment
procedures, as the proposed rule was open for a 30-day comment period.
Section 1210.341(b) of the Plan states that assessment rates shall be
fixed by the Secretary in accordance with sec. 1647(f) of the Act (7
U.S.C. 4906(f)). Currently, Sec. 1210.515(a) of the Plan states that
an assessment of three cents per hundredweight shall be levied on all
watermelons produced, and on all watermelons first handled for
consumption as human food. It also states that an assessment of six
cents per hundredweight shall be levied on watermelons imported into
the United States for consumption as human food. Further, not more than
one assessment on a producer, handler, or importer may be collected on
any lot of watermelons. Under this final rule, Sec. 1210.515(a) of the
Plan is revised to increase the assessment rate from six cents to nine
cents per hundredweight. The final rule increases the assessment rate
of three cents per hundredweight to four and a half cents per
hundredweight to be levied on all watermelons produced and on all
watermelons first handled for consumption as human food in the United
States, and increases the assessment rate from six cents to nine cents
per hundredweight to be levied on all watermelons imported into the
United States for ultimate consumption as human food.
The Board contracted with an independent industry analyst to
conduct an inflation impact analysis using the Consumer Price Index
(CPI) published by the U.S. Bureau of Labor Statistics. The base year
for the analysis was 2008, the year of the previous assessment rate
increase, and the analysis extended through April 2023. The CPI was
211.080 in January 2008 and 303.363 in April 2023. Dividing 303.363 by
211.080 yields a ratio of 1.437, or an increase of 43.7 percent. This
inflation rate equates to 2.3% when compounded annually. Dividing the
Board's average annual revenue throughout this period of $3,024,721 by
the CPI change ratio of 1.437 yields a figure of $2,104,601. This
decline of $920,120 shows the budget's reduced buying power of roughly
30 percent since the previous assessment increase. This reduction in
buying power due to inflation has a significant impact on the
industry's ability to compete for market share. The cost of media
services, research programs, promotional opportunities, as well as
general administrative costs and fees paid to USDA have continually
risen. USDA's AMS oversight costs were budgeted at $105,000 in 2008,
compared to $147,000 for 2023. It is AMS policy that all research and
promotion programs be charged in a fair and equitable manner.
Assessments collected have not kept pace with these increasing costs
across this time. Movement and sales of watermelon continue to grow,
however, that growth has not outpaced the negative effects of
inflation.
Armada Corporate Intelligence conducted a five-year return on
investment (ROI) study for the Board from 2017-2021, to determine the
impact of Board activities on the demand for watermelons. The resultant
ROI for the Board's promotional endeavors is approximately 19:1, which
displays that the activities of the Board have a significant positive
impact on the watermelon industry. For further details, the study is
located at https://www.watermelon.org/press-releases/watermelon-board-announces-significant-positive-impact-for-watermelon-industry-with-191-roi/. Armada Corporate Intelligence's 2021 econometric analysis is
aligned with prior economic studies developed for the Board, including
Dr. Harry Kaiser of Cornell University's 2017 analysis.\1\
---------------------------------------------------------------------------
\1\ https://www.watermelon.org/wp-content/uploads/2020/01/Econometric-Evaluation.pdf.
---------------------------------------------------------------------------
With the increased assessment, the financial commitment of the US
watermelon industry for research and promotion activity will increase
approximately 50% in current dollars. For example, if we apply the
assessment increase to 2023, in which collections
[[Page 104397]]
totaled $3,442,105, the increase in assessments collected would have
been approximately $1,721,053. The Board will use the additional funds
to expand promotion and research activities, maintain operating
reserves, and address inflation's impact on buying power.
The Board estimates the adjusted assessment rate of nine cents per
hundredweight will increase the cost to watermelon producers and
handlers from $12 per truckload of watermelons to $18 per truckload of
watermelons. Similarly, the adjusted assessment rate will increase the
cost to watermelon importers from $24 a truckload to $36 a truckload.
This is based on a 40,000-pound net weight of watermelons per
truckload.
Regarding alternatives, first, the Board considered maintaining the
current assessment rate of six cents per hundredweight. However, with
no increase to the assessment rate, the Board determined many research
and promotion programs would be reduced or eliminated to balance the
budget. Consequently, the alternative of maintaining the current
assessment rate was rejected.
The second alternative considered by the Board was a two-cent
increase to the assessment rate, raising the assessment rate from six
cents per hundredweight to eight cents per hundredweight. This would
allow the Board to operate with a balanced budget beginning in 2025, in
addition to increasing investment in Board promotions. However, the
Board decided against supporting a two-cent increase as inflationary
pressure may further limit operations of the Board in coming years.
The third alternative considered by the Board was a tiered increase
of the assessment rate with a two-cent increase effective on January 1,
2025, for a rate of eight cents per hundredweight, and an additional
one-cent increase effective on January 1, 2026, for a rate of nine
cents per hundredweight. This option to spread the assessment increase
over a prolonged period was considered, but the Board ultimately
decided against this alternative to avoid confusion with concurrent
annual assessment adjustments.
This final rule also includes administrative changes to Sec.
1210.515(b) of the Plan to correct non-substantive and typographical
errors. These administrative changes have no impact on the assessment
rate.
This rule will not impose additional recordkeeping requirements on
first handlers, producers, or importers of watermelons. Producers of
fewer than 10 acres of watermelon and importers of less than 150,000
pounds of watermelon annually are exempt. There are no Federal rules
that duplicate, overlap, or conflict with this rule. In accordance with
the Office of Management and Budget (OMB) regulation [5 CFR part 1320]
which implements the Paperwork Reduction Act of 1995 [44 U.S.C. chapter
35], the information collection and recordkeeping requirements that are
imposed by the Plan have been approved previously under OMB control
number 0581-0093. This rule will not result in a change to the
information collection and recordkeeping requirements previously
approved.
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 or citizen access to Government information and
services, and for other purposes.
USDA determined this rule is consistent with the Act and would
effectuate its purposes.
A proposed rule concerning this action was published in the Federal
Register on July 9, 2024 (89 FR 56234). The proposed rule was featured
on the Board's website, in addition to being distributed to all
industry stakeholders via the Board's Watermelon Update monthly
newsletter. A copy of the proposed rule was also made available through
the internet by AMS via https://www.regulations.gov. A 30-day comment
period ending on August 8, 2024, was provided for interested parties to
respond to the proposal.
Comment Analysis
During the proposed rule's 30-day comment period, AMS received 33
comments, which may be viewed on https://www.regulations.gov. Twenty-
four comments received were in support of the changes, seven were
opposed, and two were unrelated to the assessment increase or the
amendment to regulatory language.
Of the comments supporting the changes, 17 commenters stated the
assessment increase would help strengthen research and promotion
activities, with 12 of the supportive commenters additionally stating
that the increased assessment rate would in turn benefit growers,
handlers, and importers across the industry by raising the demand for
watermelons through expanded marketing initiatives. Four of these
commenters further acknowledged that the Board has a track record of
delivering a positive ROI for the industry that allows the Board to
maintain competitiveness in the marketplace. Four commenters provided
generic support for the assessment increase.
Of the seven comments that opposed the increase, four commenters
voiced concern that the industry already faces enough cost increases
across operations due to inflation with two commenters additionally
requesting for the Board lower costs rather than raise them. The Board
feels they have exhausted all cost-saving measures including scaling
back programs and liquidating reserve funds. Before proposing this
assessment increase, the Board identified a loss in buying power of
roughly 30 percent since the last assessment increase in 2008, which
impacts the amount and quality of the research and promotion
initiatives the Board can implement. Therefore, a lower assessment rate
would further reduce the activities the Board can afford, possibly
reducing their ROI.
One comment did not support the assessment increase and expressed
concern of being unsure how the additional funds would be utilized. The
Plan strictly dictates how the funds can be expended. The Board will
fund additional promotional and research initiatives across the
communication, marketing, foodservice, and research committees the
Board aims to support with an increased budget. These specifically
include activities like campus pop-up events to promote watermelon to
Gen Z, expanding in-store advertising experiences, conducting recipe
contests to reach foodservice operators, and investing further into
consumer research. These activities are outlined in the potential
budget examples distributed by the Board on their website, which was
also provided to the industry through an email in February 2024:
https://www.watermelon.org/wp-content/uploads/2023/12/The-Case-for-the-2025-NWPB-Assessment-Increase-12-11.pdf.
One opposing comment from an international grower indicates that
costs are too high, and that their Federal and State governments do not
support them in mitigating against rising farming costs. The same
commenter also indicates demand for watermelons has been low for years
and that importers will be unfairly affected by the increase since a
majority of the crop is imported for United States consumption. AMS
acknowledges this comment. However, it is not in the Board's purview to
attempt to influence inflation's effect on farming costs, as the Board
is prohibited from utilizing funds to influence governmental policy or
action as stated in sec. 1647(g)(3) of the Act (7 U.S.C. 4906(g)(3)).
As mentioned in the
[[Page 104398]]
proposed rule, inflation has affected farming and marketing costs
across the industry which requires the Board to raise the assessment
rate to fund promotional activities that maintain and expand the market
for watermelons. According to the Board's FOB and movement data, (which
is available on their website: https://www.watermelon.org/audiences/industry/assessment/), the demand for watermelons has increased
significantly since the last assessment increase from 4.3 billion
pounds in 2008 to 5.5 billion pounds in 2023. The assessment increase
is structured so importers pay nine cents per hundredweight, and
handlers and producers split the cost each remitting four and a half
cents per hundredweight. This is modeled by the current assessment
structure of the Plan where importers pay six cents per hundredweight
and handlers and procedures each remit three cents per hundredweight.
The assessment rate structure borne on the industry is reflective of
the production of the commodity. Additionally, four importers of
watermelons left supportive comments for the assessment increase during
the comment period, with one stating that the Board's efforts increase
demand for watermelons in the United States which is evident as the
number of watermelons imported from Mexico continue to grow.
Another commenter who stated opposition to the changes presented in
the proposed rule voiced concern that importers of watermelons may not
have equitable opportunities to address questions or concerns regarding
the increase or other Board funded activities. The commenter asked if
government officials of exporter countries were notified of the
proposed assessment increase. AMS acknowledges this comment and notes
that the proposed rule was published in the Federal Register to provide
notice to all interested parties, including government officials of
exporting countries, of the proposed modifications. The comment period
provided an opportunity for industry members and the public alike to
voice any concerns they may have with the proposed changes to the Plan.
As with other interested parties, government officials had notice and
opportunity to comment on the proposed assessment increase. No
government officials commented on the proposed rule. Additionally,
prior to the publication of the proposed rule, the Board conducted
outreach to industry stakeholders, including those representing
imported watermelons. For example, the Board presented potential
budgetary examples with the assessment increase to inform stakeholders,
including importers, of the proposed assessment increase and activities
that could be funded by the Board prior to the publication of the
proposed rule. The Board presented at various state and regional
association meetings, including the National Watermelon Association,
which was attended by importers of watermelons, providing all growers
equal opportunity to raise questions. In addition, the Board currently
has nine importers members who represent the industry and help oversee
the Board's policies and budget. AMS and the Board agree that
transparency and communication to all stakeholders is critical, and
accordingly, the Board notified the industry of the potential
assessment increase through a variety of channels including industry-
wide newsletters, regional and national conventions, and email
correspondence.
AMS received two non-substantive comments. One of the unrelated
comments was focused on pest control, and another voiced support for an
athlete sponsored by the Board.
Accordingly, no changes were made to the rule as proposed, based on
the comments received.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Board, the
comments received, 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 Act.
List of Subjects in 7 CFR Part 1210
Administrative practice and procedure, Advertising, Agricultural
research, Consumer information, Marketing agreements, Reporting and
recordkeeping requirements, Watermelons.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends part 1210, chapter XI of title 7 of the Code
of Federal Regulations as follows:
PART 1210--WATERMELON RESEARCH AND PROMOTION PLAN
0
1. The authority citation for part 1210 continues to read as follows:
Authority: 7 U.S.C. 4901-4916 and 7 U.S.C. 7401.
0
2. Amend Sec. 1210.515 by revising paragraphs (a) and (b) to read as
follows:
Sec. 1210.515 Levy of assessments.
(a) An assessment of four and a half cents per hundredweight shall
be levied on all watermelons produced for ultimate consumption as human
food, and an assessment of four and a half cents per hundredweight
shall be levied on all watermelons first handled for ultimate
consumption as human food. An assessment of nine cents per
hundredweight shall be levied on all watermelons imported into the
United States for ultimate consumption as human food at the time of
entry in the United States.
(b) The import assessment shall be uniformly applied to imported
watermelons that are identified by the numbers 0807.11.30 and
0807.11.40 in the Harmonized Tariff Schedule of the United States or
any other number used to identify fresh watermelons for consumption as
human food. The U.S. Customs Service and Border Protection (Customs)
will collect assessments on such watermelons at the time of entry and
will forward such assessment as per the agreement between Customs and
USDA. Any importer or agent who is exempt from payment of assessments
may submit to the Board adequate proof of the volume handled by such
importer for the exemption to be granted.
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-30268 Filed 12-20-24; 8:45 am]
BILLING CODE P