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[Federal Register Volume 78, Number 127 (Tuesday, July 2, 2013)]
[Proposed Rules]
[Pages 39632-39633]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15625]

========================================================================
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.

========================================================================


Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / 
Proposed Rules

[[Page 39632]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[Doc. AMS-CN-13-0052]

Cotton Board Rules and Regulations: Adjusting Supplemental 
Assessment on Imports (2013 Amendment)

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule is a companion to the Agricultural 
Marketing Service's (AMS) direct final rule (published today in the 
``Rules and Regulations'' section of the Federal Register), amending 
the Cotton Board Rules and Regulations by decreasing the value assigned 
to imported cotton for calculating supplemental assessments collected 
for use by the Cotton Research and Promotion Program. An amendment is 
required to adjust the value assigned to imported cotton and the cotton 
content of imported products so that it is the same as those paid on 
domestically produced cotton. In addition, AMS is updating two 
Harmonized Tariff Schedule (HTS) statistical reporting numbers that 
were amended since the last assessment adjustment. This proposed rule 
is a companion document to the direct final rule published elsewhere in 
this issue of the Federal Register. AMS is publishing this amendment as 
a direct final rule without prior proposal because the agency is 
contemplated by statute and required by regulation in 7 CFR 1205.510 
and anticipates no significant adverse comment. AMS has explained its 
reasons in the preamble of the direct final rule. If AMS receives no 
significant adverse comment during the comment period, no further 
action on this proposed rule will be taken. If, however, AMS receives 
significant adverse comment, AMS will withdraw the direct final rule 
and it will not take effect. In that case, AMS will address all public 
comments in a subsequent final rule based on this proposed rule. AMS 
will not institute a second comment period on this rule. Any parties 
interested in commenting must do so during this comment period.

DATES: Comments must be received on or before August 1, 2013.

ADDRESSES: Written comments may be submitted to the addresses specified 
below. All comments will be made available to the public. Please do not 
include any personally identifiable information (such as name, address, 
or other contact information) or confidential business information that 
you do not want publically disclosed. All comments may be posted on the 
Internet and can be retrieved by most Internet search engines. Comments 
may be submitted anonymously.
    Comments, identified by AMS-CN-12-0065, may be submitted 
electronically through the Federal eRulemaking Portal at http://www.regulations.gov. Please follow the instructions for submitting 
comments. In addition, comments may be submitted by mail or hand 
delivery to Cotton Research and Promotion Staff, Cotton and Tobacco 
Programs, AMS, USDA, 100 Riverside Parkway, Suite 101, Fredericksburg, 
Virginia, 22406. Comments should be submitted in triplicate. All 
comments received will be made available for public inspection at 
Cotton and Tobacco Programs, AMS, USDA, 100 Riverside Parkway, Suite 
101, Fredericksburg, Virginia, 22406. A copy of this notice may be 
found at: www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, 100 Riverside 
Parkway, Suite 101, Fredericksburg, Virginia, 22406, telephone (540) 
361-2726, facsimile (540) 361-1199, or email at 
Shethir.Riva@ams.usda.gov.

SUPPLEMENTARY INFORMATION: As noted above, in the ``Rules and 
Regulations'' section of today's Federal Register, the direct final 
rule being published would amend the value assigned to imported cotton 
in the Cotton Board Rules and Regulations (7 CFR 1205.510(b)(2)) that 
is used to determine the Cotton Research and Promotion assessment on 
imported cotton and cotton products.
    The total value of assessment levied on cotton imports is the sum 
of two parts. The first part of the assessment is based on the weight 
of cotton imported--levied at a rate of $1 per bale of cotton, which is 
equivalent to 500 pounds, or $1 per 226.8 kilograms of cotton. The 
second part of the import assessment (referred to as the supplemental 
assessment) is based on the value of imported cotton lint or the cotton 
contained in imported cotton products--levied at a rate of five-tenths 
of one percent of the value of domestically produced cotton.
    Section 1205.510(b)(2) of the Cotton Research and Promotion Rules 
and Regulations provides for assigning the calendar year weighted 
average price received by U.S. farmers for Upland cotton to represent 
the value of imported cotton. This is so that the assessment on 
domestically produced cotton and the assessment on imported cotton and 
the cotton content of imported products is the same. The source for the 
average price statistic is Agricultural Prices, a publication of the 
National Agricultural Statistics Service (NASS) of the Department of 
Agriculture. Use of the weighted average price figure in the 
calculation of supplemental assessments on imported cotton and the 
cotton content of imported products will yield an assessment that is 
the same as assessments paid on domestically produced cotton.
    The current value of imported cotton as published in 2012 in the 
Federal Register (77 FR 51867) for the purpose of calculating 
assessments on imported cotton is $0.014109 per kilogram. Using the 
Average Weighted Priced received by U.S. farmers for Upland cotton for 
the calendar year 2012, the direct final rule would amend the new value 
of imported cotton to $0.012876 per kilogram to reflect the price paid 
by U.S. farmers for Upland cotton during 2012.
    An example of the complete assessment formula and how the figures 
are obtained is as follows:
    One bale is equal to 500 pounds.
    One kilogram equals 2.2046 pounds.
    One pound equals 0.453597 kilograms.

One Dollar per Bale Assessment Converted to Kilograms

    A 500-pound bale equals 226.8 kg. (500 x 0.453597).
    $1 per bale assessment equals $0.002000 per pound or $0.2000 cents

[[Page 39633]]

per pound (1/500) or $0.004409 per kg or $0.4409 cents per kg. (1/
226.8).

Supplemental Assessment of 5/10 of One Percent of the Value of the 
Cotton Converted to Kilograms

    The 2012 calendar year weighted average price received by producers 
for Upland cotton is $0.768 per pound or $1.693 per kg. (0.768 x 
2.2046).
    Five tenths of one percent of the average price equals $0.008467 
per kg. (1.693 x 0.005).

Total Assessment

    The total assessment per kilogram of raw cotton is obtained by 
adding the $1 per bale equivalent assessment of $0.004409 per kg. and 
the supplemental assessment $0.008467 per kg., which equals $0.012876 
per kg.
    The current assessment on imported cotton is $0.014109 per kilogram 
of imported cotton. The revised assessment in the direct final rule is 
$0.012876, a decrease of $0.001233 per kilogram. This decrease reflects 
the decrease in the average weighted price of Upland cotton received by 
U.S. Farmers during the period January through December 2012.
    Import Assessment Table in section 1205.510(b)(3) indicates the 
total assessment rate ($ per kilogram) due for each HTS number that is 
subject to assessment. This table must be revised each year to reflect 
changes in supplemental assessment rates. In the direct final rule, AMS 
amends the Import Assessment Table. AMS also compared the current 
import assessment table with the U.S. International Trade Commission's 
(ITC) 2013 HTS and information from U.S. Customs and Border Protection 
and identified two HTS statistical reporting numbers that no longer 
exist in the HTS and that have been changed by ITC. In the direct final 
rule, AMS is amending the following HTS statistical reporting numbers 
for consistency with published ITC numbers:

------------------------------------------------------------------------
                                                        Revised 2013 HTS
                    2012 HTS codes                            codes
------------------------------------------------------------------------
5513390015............................................        5513390115
5513390091............................................        5513390191
------------------------------------------------------------------------

    AMS believes that these amendments are necessary to assure that 
assessments collected on imported cotton and the cotton content of 
imported products are the same as those paid on domestically produced 
cotton. Accordingly, changes reflected in this rule should be adopted 
and implemented as soon as possible since it is required by regulation.
    The amendment proposed by this notice is the same as the amendment 
contained in the direct final rule. Please refer to the preamble and 
regulatory text of the direct final rule for further information and 
the actual text of the amendment. Statutory review and Executive Orders 
for this proposed rule can be found in the SUPPLEMENTARY INFORMATION 
section of the direct final rule.
    A 30-day comment period is provided to comment on the changes to 
the Cotton Board Rules and Regulations proposed herein. This period is 
deemed appropriate because this rule would decrease the assessments 
paid by importers under the Cotton Research and Promotion Order. An 
amendment is required to adjust the assessments collected on imported 
cotton and the cotton content of imported products to be the same as 
those paid on domestically produced cotton. Accordingly, the change in 
this rule, if adopted, should be implemented as soon as possible.

    Authority:  7 U.S.C. 2101-2118.

    Dated: June 25, 2013.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2013-15625 Filed 7-1-13; 8:45 am]
BILLING CODE 3410-02-P
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