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contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

12321 

Vol. 80, No. 45 

Monday, March 9, 2015 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1471 

RIN 0551–AA86 

Pima Agriculture Cotton Trust Fund 

and Agriculture Wool Apparel 

Manufacturers Trust Fund 

AGENCY: Foreign Agricultural Service 

and Commodity Credit Corporation 

(CCC), USDA. 

ACTION: Final rule with request for 

comments. 

SUMMARY: This final rule implements 

the Pima Agriculture Cotton Trust Fund 

(Agriculture Pima Trust) and the 

Agriculture Wool Apparel 

Manufacturers Trust Fund (Agriculture 

Wool Trust) Fund established in the 

Agricultural Act of 2014 (Farm Bill). 

The Agriculture Pima Trust provides 

annually for one payment, called the 

Pima Cotton Payments. The Agriculture 

Wool Trust provides annually for four 

payments. The first payment under the 

Agriculture Wool Trust is currently 

administered by the Department of 

Commerce’s Office of Textiles and 

Apparel (OTEXA), and is called the 

Grants to Manufacturers of Certain 

Worsted Wool Fabrics. This program is 

being transferred from OTEXA to the 

Secretary of Agriculture (Secretary), 

who will administer the payment for the 

2015–2019 calendar years, and will be 

called Payments to Manufacturers of 

Certain Worsted Wool Fabrics. The 

second payment is called Monetization 

of the Wool TRQ. The Farm Bill requires 

the Secretary to determine a monetary 

amount equivalent to what a person 

would have saved if OTEXA’s Wool 

Tariff Rate Quota program (Wool TRQ) 

were still in effect. This payment will be 

based on OTEXA’s Wool Tariff Rate 

Quota program, which terminated at the 

end of calendar year 2014. The 

Monetization of the Wool TRQ will be 

administered by the Secretary for the 

2015–2019 calendar years. The third 

payment is called the Wool Yarn, Wool 

Fiber, and Wool Top Duty 

Compensation Payment. Payments are 

made to processors of wool yarn, wool 

fiber, and wool top to compensate them 

for termination of the suspension of 

import duties on such wool. This 

payment will be administered by the 

Secretary for the 2015–2019 calendar 

years. The fourth payment is called the 

Refund of Duties Paid on Imports of 

Certain Wool Products. This program is 

currently administered by the 

Department of Homeland Security’s 

Customs and Border Protection (CBP) 

through calendar year 2015. The 

program will be transferred in calendar 

year 2016 to the Secretary, who will 

administer the program for the 2016– 

2019 calendar years. Regulations for the 

fourth payment will be published at a 

later date. 

DATES: This final rule is effective March 

9, 2015. Comments concerning this final 

rule must be received by April 8, 2015, 

to be assured consideration. We are 

issuing this final rule without prior 

notice and opportunity for comment. 

ADDRESSES: The Foreign Agricultural 

Service (FAS), USDA, invites interested 

persons to submit comments on this 

final rule. Comments may be submitted 

by one of the following methods: 

• Federal e-Rulemaking Portal: Go to 

http://www.regulations.gov. Preferred 

method; follow the on-line instructions 

for submitting comments on the final 

rule. 

• Email: Comments can also be 

addressed to Mr. Benjamin Chan at 

pimawool@fas.usda.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. FAS will 

make the comments publicly available 

online at: http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Benjamin Chan, Import Policies and 

Export Reporting Division, Office of 

Trade Policy, Foreign Agricultural 

Service, U.S. Department of Agriculture; 

email: pimawool@fas.usda.gov; 202– 

720–8877. 

SUPPLEMENTARY INFORMATION: 

Background 

Purpose of the Regulatory Action 

This rule sets forth regulations 

regarding the implementation of the 

Pima Agriculture Cotton Trust Fund and 

the Agriculture Wool Apparel 

Manufacturers Trust Fund. 

Subpart A. Pima Agriculture Cotton 

Trust Fund (Agriculture Pima Trust) 

The Agriculture Pima Trust was 

established in section 12314 of the Farm 

Bill. The Agriculture Pima Trust is a 

funding mechanism for pima cotton 

payments. 

(1) Pima Cotton Payments 

The Secretary is required in section 

12314 of the Farm Bill to establish an 

annual payment for domestic users of 

pima cotton, pima cotton yarn spinners, 

and pima cotton trade associations. The 

Foreign Agricultural Service (FAS) has 

been delegated the authority to 

administer this payment and to issue 

regulations to carry it out for calendar 

years 2014–2018. There was insufficient 

time to publish regulations for the 2014 

payment and a notice was published in 

the Federal Register at 72 FR 29363 on 

May 2, 2014. Subpart A is applicable to 

annual payments in the 2015–2018 

calendar years. 

The purpose of the annual payment is 

to provide monetary relief to certain 

persons in the U.S. that have incurred 

economic injury through the 

importation of pima cotton and have 

incurred tariffs on pima cotton fabric 

that are higher than tariffs on certain 

imported apparel articles made of pima 

cotton fabric. The first Pima Cotton 

Trust Fund was established under the 

Tax Relief and Health Care Act of 2006 

and administered by the Customs and 

Border Protection Agency of the 

Department of Homeland Security (CBP) 

in 2007 and 2008. Section 12314 of the 

Farm Bill authorized the Agriculture 

Pima Trust and pima cotton payment for 

the 2014–2018 calendar years. The Farm 

Bill authorizes $16 million from the 

Commodity Credit Corporation (CCC) 

for each calendar year to fund annual 

payments. 

Section 12314 requires that a specific 

percentage of annual funding be 

distributed to certain sectors of the 

domestic pima cotton apparel industry. 

Twenty-five percent is to be paid to one 

or more nationally recognized 

associations established for the 

promotion of pima cotton for use in 

textile and apparel goods. 

Twenty-five percent is to be paid to 

domestic yarn spinners of pima cotton 

that, during the calendar year 


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immediately preceding the payment and 

during calendar year 2013, produced 

ring spun cotton yarns in the United 

States measuring less than 83.33 decitex 

(exceeding 120 metric number), in 

single and plied form. A payment to a 

yarn spinner is based on the ratio of the 

yarn spinner’s 2013 production to the 

total production of all domestic yarn 

spinners in 2013 who qualify for a 

payment. 

The remaining fifty percent is to be 

paid to manufacturers that during both 

the calendar year immediately 

preceding the payment and during the 

2013 calendar year used imported pima 

cotton fabric (80s or higher count and 2- 

ply in warp) to manufacture men’s and 

boys’ woven pima cotton shirts. A 

payment to a manufacturer is based on 

the ratio of the dollar value (excluding 

duty, shipping, and insurance) of the 

manufacturer’s 2013 production of 

men’s and boys’ woven pima cotton 

shirts to the dollar value (excluding 

duty, shipping, and insurance) of the 

total production in 2013 of all men’s 

and boys’ woven pima cotton shirts by 

manufacturers who qualify for a 

payment. The Farm Bill explicitly 

requires exclusion of ‘‘duty, shipping, 

and related costs’’ from the reported 

dollar value of imported woven cotton 

shirting fabric. Of the costs ‘‘related’’ to 

shipping that are separate from the 

freight cost itself, insurance is generally 

the largest. As payments to 

manufacturers are based on a 

production ratio incorporating the 

intrinsic dollar value of the imported 

fabric, excluding ‘‘duty, shipping, and 

related costs’’ in both parts of the ratio, 

to limit ‘‘related costs’’ to insurance 

gives effect to the purpose of the statute 

and affords simplicity of calculation. 

To apply for a payment, claimants are 

required to submit an affidavit by March 

15 of the calendar year of the 

application for a payment. Payments 

will be made not later than April 14. 

Persons applying for a payment must 

provide information required by the 

Secretary through annual affidavits. 

Subpart B. Agriculture Wool Apparel 

Manufacturers Trust Fund (Agriculture 

Wool Trust) 

The Agriculture Wool Trust was 

established in section 12315 of the Farm 

Bill. The Agriculture Wool Trust is a 

funding mechanism for four payments: 

(1) Payments to Manufacturers of 

Certain Worsted Wool Fabrics; (2) 

Monetization of the Wool Tariff Rate 

Quota; (3) Wool Yarn, Wool Fiber, and 

Wool Top Duty Compensation Payment; 

and (4) Refund of Duties Paid on 

Imports of Certain Wool Products. 

(1) Payments to Manufacturers of 

Certain Worsted Wool Fabrics 

OTEXA has administered the Grants 

to Manufacturers of Certain Worsted 

Wool Fabrics program through calendar 

2014. Section 4002(c)(6) of the 

Miscellaneous Trade and Technical 

Corrections Act of 2004, as amended, 

authorizes OTEXA to administer this 

payment through 2014. Section 

12315(b)(1) of the Farm Bill directed the 

Secretary to continue to administer this 

payment for the 2015–2019 calendar 

years. The title is changed to ‘‘Payments 

to Manufacturers of Certain Worsted 

Wool Fabrics’’ to avoid confusion with 

competitive grant programs also 

administered by the Secretary. 

The purpose of this payment is to 

provide financial assistance to persons 

in the U.S. that manufactured worsted 

wool fabrics during 1999, 2000, and 

2001. Section 12315 of the Farm Bill 

authorizes the Secretary to continue to 

make these payments to the same 

persons that, during the calendar year 

immediately preceding the payment and 

during calendar years 1999, 2000, and 

2001, were manufacturers of at least one 

of two kinds of worsted wool fabrics: (1) 

Subheading 9902.51.11 of the 

Harmonized Tariff Schedule of the 

United States (HTS) containing 85 

percent or more by weight of wool, with 

average fiber diameters greater than 18.5 

microns; and (2) subheading 9902.51.15 

of the HTS containing 85 percent or 

more by weight of wool, with average 

fiber diameters of 18.5 microns or less. 

All references to subheadings of the 

HTS in the context of this payment are 

to the subheadings as described in the 

HTS in 2014. 

As specified by the Miscellaneous 

Trade and Technical Corrections Act of 

2004, an amount of $2.666 million is 

available each year for each HTS 

subheading of wool fabric, to be divided 

between persons based on the 

percentage of each person’s total actual 

manufacturing of that type of worsted 

wool fabric during each of calendar 

years 1999, 2000, and 2001 in relation 

to the total manufacturing of such fabric 

by all persons who qualified for 

payments in those years. 

Persons applying for a payment must 

provide information required by the 

Secretary through annual affidavits. 

(2) Monetization of the Wool Tariff Rate 

Quota (TRQ) 

The Wool TRQ was established in 

Title V of the Trade and Development 

Act of 2000, and provided for temporary 

duty reductions—i.e., lower duty rates— 

on limited quantities of two categories 

of worsted wool fabrics suitable for use 

in making suits, suit-type jackets, or 

trousers for men and boys. The TRQ has 

been administered since 2004 by 

OTEXA, and the authority for the TRQ 

expired on December 31, 2014. 

This worsted wool fabric is of the 

kind described in subheading 

9902.51.11 of the HTS with average 

fiber diameters greater than 18.5 

microns, and subheading 9902.51.15 of 

the HTS with average fiber diameters of 

18.5 microns or less. A third worsted 

wool fabric HTS subheading was added 

to the TRQ by the Miscellaneous Trade 

Act of 2004, subheading 9902.51.16 of 

the HTS, with average fiber diameters of 

18.5 microns or less. 

All references to subheadings of the 

HTS in the context of this payment are 

to the subheadings as described in the 

2014 HTS. The subheading references 

are to a past HTS because these 

subheadings have expired and have 

been subsumed under other HTS 

headings in 2015. Congress also used 

these now expired HTS subheadings in 

the Farm Bill, further necessitating their 

use here. The term ‘‘duty paid’’ means 

the dollar amount of the duty actually 

paid by an importer in the calendar year 

immediately preceding the payment. In 

other words, duty paid equals the 

applicable duty rate multiplied by the 

quantity of worsted wool fabric 

imported. The term ‘‘lower duty rate’’ 

means the rate of duty that would have 

been applied under the 2014 HTS 

because of the duty reduction 

percentage required by the Wool TRQ 

that ended on December 31, 2014. 

On February 7, 2014, Congress created 

in section 12315(e) of the Farm Bill a 

new payment that ‘‘monetizes’’ 

OTEXA’s Wool TRQ. Because the lower 

duty rate is no longer available to 

importers after December 31, 2014, 

when authority for the TRQ expired, 

Congress decided to monetarily 

compensate importers of worsted wool 

fabric of the kind covered by the three 

HTS subheadings for the additional cost 

of the increased tariff. Congress 

accomplished this in section 12315(e) 

by requiring that in the event that the 

Wool TRQ administered by OTEXA 

should expire during the administration 

of the Agriculture Wool Trust by the 

Secretary (through 2019), the Secretary 

shall determine an amount ‘‘. . . that is 

equal to the amount the manufacturer or 

successor-in-interest would have saved 

during the calendar year of the payment 

if the suspension [or reduction] of duty 

on wool fabrics were in effect.’’ The 

Secretary has delegated this function to 

FAS at 7 CFR 2.43. 

Section 12315(e) provides that only 

the person (or a successor-in-interest to 

the person) that imported worsted wool 


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fabric involving one or more of the three 

HTS subheadings covered by this 

payment is eligible for the payment. To 

be eligible for a payment, the person 

must also have used the imported 

worsted wool fabric to produce in the 

U.S. suits, suit-type jackets, or trousers 

for men and boys (or, in the case of 

imported wool of the kind described in 

HTS subheading 9902.51.16, must have 

manufactured the wool fabric) during 

the calendar year immediately 

preceding the payment. 

The worsted wool fabric covered by 

the three HTS subheadings under this 

payment are either imported directly by 

persons (i.e., importing manufacturer), 

in which case the person directly 

purchased the imported worsted wool 

fabric and paid the duty, or imported 

indirectly (i.e., non-importing 

manufacturer) through a third party 

broker that had directly paid the duty. 

The payment applies to persons that 

either directly or indirectly imported 

worsted wool fabric. 

The calendar year immediately 

preceding the payment is the time 

period that will be used to establish the 

basis for calculating a payment. This 

historical basis applies to the duty paid 

and to the production or processing by 

the person applying for a payment. The 

duty paid arises from application of the 

duty rate applicable to imports of one or 

more of the three worsted wool fabrics 

of the kind described in the three 

subheadings covered by the payment. 

To be eligible for a payment, during the 

calendar year immediately preceding 

the payment a person must have 

imported, directly or indirectly, one or 

more of these HTS subheadings of 

worsted wool fabric, and used such 

worsted wool fabric in the U.S. to make 

men’s and boy’s suits, suit-type jackets, 

or trousers (or, in the case of subheading 

9902.51.16, manufactured such worsted 

wool fabric). 

Section 12315(e) of the Farm Bill 

anticipates a time when the TRQ’s lower 

duty rate is no longer in effect, 

acknowledges that duty rates will have 

increased upon expiration of the TRQ, 

and focuses on the savings that an 

importer (direct or indirect) of worsted 

wool fabric would have realized had the 

lower duty rate remained in effect. 

Section 12315(e) states that the savings 

is ‘‘. . . an amount . . . equal to the 

amount the manufacturer or successorin-interest would have saved during the 

calendar year . . . if the suspension [or 

reduction] of duty on wool fabrics were 

in effect.’’ The focus of the savings is on 

the difference between the duty paid for 

the worsted wool fabric in the calendar 

year immediately preceding the 

payment, and the duty that would have 

been paid on the same quantity of 

worsted wool fabric if the lower duty 

rate had applied. This allows the 

payment to address the ‘‘savings’’ 

contemplated in 12315(e) of the Farm 

Bill as close to the real time experience 

of the person as is administratively 

possible. For example, a person’s import 

of worsted wool fabric in calendar year 

2016 will be the basis for calculating the 

person’s payment in 2017. This is 

consistent with the statute’s focus on 

the savings that would have been 

realized if a TRQ were still in effect, and 

is also consistent with OTEXA 

previously basing a TRQ allocation on a 

period of time immediately prior to the 

allocation. 

The payment will be made to eligible 

persons by April 15 of the calendar year 

subsequent to the year of the person’s 

reported wool fabric imports. This 

allows the Secretary to base the 

payment on the person’s total actual 

imports of wool fabric during the 

calendar year immediately preceding 

the payment. 

The savings involves three factors 

spread over two time periods: (1) The 

duty paid at the higher duty rate 

applicable to the worsted wool fabric 

described in the applicable 2014 HTS 

subheadings in the calendar year 

immediately preceding the payment; (2) 

the production or further processing of 

the imported worsted wool fabric in the 

calendar year immediately preceding 

the payment; and (3) the duty paid at 

the lower duty rate applicable to that 

HTS subheading of worsted wool fabric 

in 2014, the last year the TRQ was 

effective. The higher value of duty paid 

in the calendar year immediately 

preceding the payment is used to 

calculate the 2016–2019 payments. 

However, for the 2015 payment, the 

higher duty rate in the 2015 HTS will 

be used instead of the duty rate 

applicable in the calendar year 

immediately preceding the payment, 

which would be 2014. The reason for 

this exception for the 2015 payment is 

that 2014 is both the last year in which 

the TRQ’s lower duty rate was still in 

effect, and is also the calendar year 

immediately preceding the payment 

(2015). As a result, for the 2015 

payment, a proxy is necessary to serve 

as the higher duty rate in the calendar 

year immediately preceding the 

payment. It is necessary to create such 

a proxy and generate a 2015 payment, 

because the statute requires that this 

payment be made in any year in which 

the wool TRQ is not in effect. The first 

year the TRQ is not in effect is calendar 

year 2015. Notwithstanding this proxy 

for the higher duty rate for a 2015 

payment, the calendar year immediately 

preceding the payment (2014) will still 

be used to establish that production or 

processing by the eligible person 

occurred (which is an eligibility 

requirement). 

There were three essential data 

components of the wool TRQ that 

terminated at the end of the 2014 

calendar year: (1) The quantity of 

imported wool fabric subject to the 

lower duty rate; (2) the price of the 

imported wool fabric; and (3) the 

person’s actual production of worsted 

wool suits, suit-type jackets, or trousers 

for men and boys (or, in the case of wool 

under HTS subheading 9902.51.16, 

manufactured the wool fabric). This 

information has been annually collected 

by OTEXA by means of affidavits 

supplied by persons applying for a 

payment. The Secretary will continue to 

collect this information through annual 

affidavits to ensure that the person, 

during the calendar year immediately 

preceding the payment, (1) imported, 

either directly or indirectly, the quantity 

of worsted wool fabric of the kind 

described under one or more of the HTS 

subheadings covered by this payment, 

and (2) produced in the U.S. suits, suittype jackets, or trousers for men and 

boys (or, in the case of wool under HTS 

subheading 9902.51.16, manufactured 

the wool fabric). 

The dollar value and quantity of such 

imports are also factors in determining 

the savings that would have been 

realized because of the TRQ. Dollar 

value data effectively captures the price 

of such fabric and the dollar amount 

paid by the person. OTEXA has 

collected data about the dollar value 

and quantity of such imports by 

requiring the person to report the dollar 

value and quantity of the imports during 

the first six months of the calendar year 

of the license allocation. The Secretary 

will continue to collect the person’s 

reported dollar value and quantity of 

imports of worsted wool fabric, but will 

require information about imports for 

the entire calendar year immediately 

preceding the payment. The savings in 

the context of the payment can be 

restated accordingly. In any calendar 

year in which the lower duty rate on 

worsted wool fabric of the kind 

described in subheadings 9902.51.11, 

9902.51.15, and 9902.51.16 of the 2014 

HTS is not in effect, a person (or a 

successor-in-interest of the person) that, 

during the calendar year immediately 

preceding the payment, in the U.S., (1) 

directly or indirectly imported worsted 

wool fabric of the kind described under 

one or more of the three HTS 

subheadings covered by this payment, 

and (2) used the worsted wool fabric to 

produce suits, suit-type jackets, or 


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trousers for men and boys (or, in the 

case of worsted wool fabric covered by 

subheading 9902.51.16, manufactured 

the worsted wool fabric), is eligible for 

a payment that is equivalent to the 

difference between the higher duty paid 

on such worsted wool fabric in the 

calendar year immediately preceding 

the payment and the reduced duty that 

would have been payable under the 

TRQ (in 2014) on the quantity of 

worsted wool fabric imported in the 

calendar year immediately preceding 

the payment. For the purpose of 

calculating the payment for each of the 

2015–2019 calendar years, it will be 

assumed that 100% of the person’s 

imports were covered by the lower duty. 

The rationale for this assumption is that 

under the wool TRQ that expired on 

December 31, 2014, persons that 

received licenses to import up to 

specific amounts of worsted wool fabric 

at reduced duty rates never used the 

entire license allotment, and the excess 

allotment was left unused. In those 

cases, because 100% of the person’s 

imports were in fact covered by the 

available lower duty rate under the 

TRQ, the savings referenced in section 

12315(e) should also apply to 100% of 

a person’s imports. 

The duty rate codified in the 2014 

HTS applicable to imports of worsted 

wool fabric in the calendar year 

immediately preceding the payment fall 

into one of three categories: (1) The 

general duty rate that is applicable to 

worsted wool fabric covered by the 

subheading unless one of the other two 

categories applies; (2) the duty rate is 

0%, because imports from certain listed 

countries are duty free; and (3) duty 

rates applicable to imports from specific 

countries (e.g., 7.5% duty rate for 

imports of worsted wool fabric under 

subheading 9902.51.11 of the HTS from 

Oman in 2015). Because the HTS is 

statutory, one of the three categories 

must be applied when calculating a 

monetary payment. Similarly, in years 

following 2014, the applicable duty may 

vary as a function of the country of 

origin of the imported fabric. In any 

given year, the country of origin of the 

worsted wool fabric will affect the 

applicable duty rate and resulting duty 

paid used to calculate the payment. The 

duty rate applicable to worsted wool 

fabric under subheadings 9902.51.15 

and 9902.51.16 of the 2014 HTS was 

0%, and for subheading 9902.51.11 of 

the 2014 HTS was 10%. Thus, in any 

given year, duty rates may vary based on 

the country of origin of the imported 

fabrics, and as a result, the amount of 

the payment may be significantly 

affected. 

The payment will be annually 

calculated for each of the 2015–2019 

calendar years as follows. For each HTS 

subheading, the savings of the person 

for any given calendar year will be the 

difference between the higher duties 

paid in the calendar year preceding the 

payment and the duties that would have 

been payable at the lower 2014 duty 

rate. The savings for each of the three 

subheadings will then be added 

together, the sum of which will equal 

the annual payment for that person. 

Two simple examples, the first 

involving imports in 2017 and the other 

in 2015, illustrate how this calculation 

will work. 

The first example applies to a 

payment in 2017. Under the TRQ that 

expired on December 31, 2014, worsted 

wool fabrics entering the United States 

under HTS subheadings 9902.51.15 and 

9902.51.16 were assessed zero duty, and 

worsted wool fabrics from Oman 

entering under 9902.51.11 were 

assessed a 10% duty. Starting on 

January 1, 2017, assume that imports 

entering the United States of worsted 

wool fabrics previously described under 

HTS subheadings 9902.51.15 and 

9902.51.16 (but in 2017 actually 

entering under a different HTS 

subheading, because of the expiration of 

the particular subheadings under HTS 

chapter 99) are assessed a 20% duty, 

and worsted wool fabrics from Oman 

previously described under 9902.51.11 

are assessed a 10% duty. 

A person imports 200 square meters 

of worsted wool fabric in 2017, 100 

square meters of which is of the kind 

described by HTS subheadings 

9902.51.15 and 9902.51.16, and the 

remaining 100 square meters is of the 

kind described in HTS subheading 

9902.51.11, imported from Oman. The 

person reports a dollar value of $1 per 

square meter. For the 100 square meters 

of worsted wool described under HTS 

subheadings 9902.51.15 and 9902.51.16, 

the calculation would be 0.20 (20% 

converted to a numeric value), which is 

the duty rate in 2016, minus 0 (2014 

duty rate, 0%, converted to a numeric 

value), multiplied by 100 (dollar value), 

which would equal $20 ((0.20¥0) × 

100). For the 100 square meters of 

worsted wool fabric described under 

HTS subheading 9902.51.11 and 

imported from Oman, the calculation 

would be 0.10 (10% converted to a 

numeric value), the duty rate in 2015, 

the calendar year immediately 

preceding the payment, minus 0.10 

(10%, the 2016 duty rate when Oman is 

the country of origin) multiplied by 100 

(dollar value), which would equal $0 

((0.10¥0.10) × 100). 

The second example applies to a 

payment in 2015 using the ‘‘2015 

proxy’’ discussed above. Recall that 

under the applicable TRQ that expired 

on December 31, 2014, worsted wool 

fabrics entering the United States under 

HTS subheadings 9902.51.15 and 

9902.51.16 were assessed zero duty, and 

worsted wool fabrics from Oman 

entering under 9902.51.11 were 

assessed a 10% duty. Starting on 

January 1, 2015, imports entering the 

United States of worsted wool fabrics 

previously described under HTS 

subheadings 9902.51.15 and 9902.51.16 

are assessed a 25% duty, and imports of 

worsted wool fabrics from Oman 

previously described under 9902.51.11 

are assessed a 20% duty. 

A person imports 200 square meters 

of worsted wool fabric in 2015, 100 

square meters of which is of the kind 

previously described by HTS 

subheadings 9902.51.15 and 9902.51.16, 

and the remaining 100 square meters is 

of the kind previously described in HTS 

subheading 9902.51.11 imported from 

Oman. The person reports a dollar value 

of $1 per square meter. For the 100 

square meters of worsted wool under 

HTS subheadings 9902.51.15 and 

9902.51.16, the calculation would be 

0.25 (25% converted to a numeric 

value), which is the 2015 higher duty 

proxy used when the calendar year 

immediately preceding the payment is 

2014, minus 0 (2014 duty rate, 0%, 

converted to a numeric value), 

multiplied by 100 (dollar value), which 

would equal $25 ((0.25¥0) × 100). For 

the 100 square meters of worsted wool 

fabric under HTS subheading 

9902.51.11 imported from Oman, the 

calculation would be 0.20 (20% 

converted to a numeric value), the 2015 

higher duty proxy when the calendar 

year immediately preceding the 

payment is 2014, minus 0.10 (10%, the 

2014 duty rate when Oman is the 

country of origin) multiplied by 100 

(dollar value), which would equal $10 

((0.20¥0.10) × 100). The statutory 

language of section 12315 directs the 

Secretary to determine the savings that 

the person would have realized if the 

lower duty rate had been in effect. Thus, 

it is not necessary to determine what the 

person would have done with the 

savings realized from the lower duty 

rate. Nor is it necessary to inquire about 

the person’s imports in a year that also 

include imported worsted wool fabric 

that is of the kind under HTS 

subheadings other than those covered 

by this payment, imported worsted wool 

fabric not subject to the duty reduction, 

or domestic wool. 

As discussed earlier, the payment 

applies to direct and indirect imports of 


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worsted wool fabric of the kind 

described in the three specific HTS 

subheadings. If the import was through 

a third party broker, the person must so 

state in the affidavit prior to the 

payment, and provide any other 

information required by FAS. For 

persons that are indirect importers of 

worsted wool fabric, the dollar value of 

the imports reported in their affidavit 

will be subject to a 10% reduction by 

the Secretary. The reason for this 

reduction is that the broker that directly 

imported the worsted wool fabric is 

assumed to sell it to the person who 

submits the affidavit for an amount 

higher than the tariff price. The 10% 

reduction is intended to compensate for 

that higher price, and make the reported 

price paid by indirect importers more 

equivalent to the price paid by direct 

importers. OTEXA also administered 

this 10% reduction in the reported price 

paid by indirect importers as part of its 

administration of the wool TRQ. 

Persons that imported worsted wool 

fabric directly are required to submit to 

FAS as part of the affidavit package 

scanned copies of the CBP Form 7501 

‘‘Entry Summary’’ for the relevant 

calculations made in the affidavit. 

Persons that imported worsted wool 

fabric indirectly are required to submit 

to FAS as part of the affidavit package 

invoices from third party brokers for the 

relevant calculations made in the 

affidavit. 

Persons applying for a payment must 

provide information required by the 

Secretary through annual affidavits. 

(3) Wool Yarn, Wool Fiber, and Wool 

Top Duty Compensation Payment 

All references to subheadings of the 

HTS in the context of this payment are 

to the subheadings as described in the 

2014 HTS. 

The duty on imported wool yarn of 

the kind described in subheading 

9902.51.13 of the HTS, and the duty on 

wool fiber and wool top of the kind 

described in subheading 9902.51.14 of 

the HTS were suspended in their 

entirety in section 503 of the Trade and 

Development Act of 2000. The total 

duty suspension for both subheadings 

has been extended three times since 

then, most recently through December 

31, 2014. Section 12315(e) of the Farm 

Bill requires the Secretary to make 

payments to processors of wool yarn, 

fiber, and top of the kind described in 

subheadings 9902.51.13 and 9902.51.14 

of the HTS, respectively, in amounts 

that the processors would have saved if 

the duty suspension had been in effect. 

To be eligible for a payment, during 

the calendar year immediately 

preceding the payment a person must 

have imported into the U.S., directly or 

indirectly, wool yarn, fiber or top of the 

kind described in subheadings 

9902.51.13 and 9902.51.14, and 

manufactured such wool yarn, fiber, or 

top in the U.S. 

The duty rates in chapter 99 of the 

HTS for subheadings 9902.51.13 and 

9902.51.14 are listed in three categories: 

(1) The general duty rate applicable to 

wool yarn covered by the subheading, 

unless one of the other two categories 

applies; (2) the duty rate is 0 because 

imports from certain listed countries are 

duty free; and (3) duty rates applicable 

to imports from specific countries (e.g., 

2.4% duty rate for imports of wool yarn 

from Oman in calendar year 2014). 

Because the HTS is statutory, one of the 

three categories must be applied when 

calculating a monetary payment 

equivalent to the savings that a person 

would have realized if the suspension of 

the duty rate had been in effect. Thus, 

the country of origin of the wool yarn, 

wool fiber, or wool top, may 

significantly affect the duty rate used to 

calculate a person’s payment. The 

general duty rate applicable to 

subheading 9902.51.13 in 2000 was 6% 

of the import price of the imported wool 

yarn at the time the duties were 

suspended. The general duty rate 

reverted to 6% of the import price of the 

imported wool yarn in 2015. 

However, subheading 9902.51.14, 

which expired at the end of 2014, 

applied to wool fiber and top now 

described in eight subheadings of 

chapter 51 of the HTS, and the duty 

applicable to each subheading in 

chapter 51 varies. Thus, a determination 

of the applicable duty is subject to the 

determination of the Secretary in 

accordance with duty rates applicable to 

the specific sub-subheading of wool 

fiber or top imported. 

The difference between the 0% duty 

in effect during the duty suspension and 

the duty applicable in the calendar year 

immediately preceding the payment for 

the two HTS subheadings of wool yarn, 

fiber, and top (which is 100% of the 

duty) will be used to calculate duty 

compensation payments. Section 

12315(e) of the Farm Bill anticipates a 

time when the total duty suspension is 

no longer in effect, acknowledges that 

duty rates will have increased upon 

expiration of the total duty suspension, 

and focuses on the savings that an 

importer (direct or indirect) of wool 

yarn, fiber, or top would have realized 

had the 0% duty rate remained in effect. 

Section 12315(e) of the Farm Bill states 

that the annual payment is ‘‘. . . an 

amount . . . equal to the amount the 

manufacturer or successor-in-interest 

would have saved during the calendar 

year . . . if the suspension . . . of duty 

on wool fabrics were in effect.’’ The 

focus of the savings is on the difference 

between the duty paid for the wool 

yarn, fiber or top of the kind described 

in subheadings 9902.51.13 and 

9902.51.14 in the calendar year 

immediately preceding the payment, 

and the 0% duty that would have been 

paid for such wool imported into the 

U.S., directly or indirectly, if the total 

duty suspension were still in effect. 

This allows the payment to address the 

‘‘savings’’ contemplated in 12315(e) of 

the Farm Bill as close to the real time 

experience of the person as is 

administratively possible. For example, 

a person’s import of wool yarn, fiber or 

top in calendar year 2016 will be the 

basis for calculating the person’s 

payment in 2017. This is consistent 

with the statute’s focus on the savings 

that would have been realized if a duty 

suspension were still in effect, and is 

also consistent with CBP’s treatment of 

wool yarn, fiber or top in its Wool Duty 

Refund Program, in which it based the 

Duty Refund payment on the prior year. 

The payment will be made to eligible 

persons by April 15 of the calendar year 

subsequent to the year of the person’s 

reported imports. This allows the 

Secretary to base the payment on the 

person’s total actual imports of wool 

yarn, fiber or top during the calendar 

year immediately preceding the 

payment. 

The savings involves three factors 

spread over two time periods: (1) The 

higher duty rate applicable to the wool 

yarn, fiber or top described in the 

applicable 2014 HTS subheadings in the 

calendar year immediately preceding 

the payment; (2) the further processing 

of the imported wool yarn, fiber or top 

in the calendar year immediately 

preceding the payment; and (3) the total 

duty suspension applicable to that HTS 

subheading of wool yarn, fiber or top in 

2014, the last year the duty suspension 

was effective. The higher duty rate paid 

by the eligible person in the calendar 

year immediately preceding the 

payment is used to calculate the 2016– 

2019 payments. However, for the 2015 

payment, the higher duty rate in the 

2015 HTS will be used instead of the 

total duty suspension effective through 

the 2014 calendar year. The reason for 

this exception for the 2015 payment is 

that 2014 is both the last year in which 

the total duty suspension was still in 

effect and the calendar year 

immediately preceding the payment (in 

2015). As a result, for the 2015 payment, 

a proxy is necessary for the higher duty 

rate. It is necessary to create this proxy 

for the 2015 payment because Congress 


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requires that this payment be made 

when the duty suspension is no longer 

in effect. The first year the duty 

suspension is not in effect is calendar 

year 2015. Finally, for a 2015 payment, 

the calendar year immediately 

preceding the payment will still be used 

to establish the dollar value of the 

imported wool yarn, fiber, or top by the 

eligible person. 

The dollar value of the wool yarn, 

fiber or top imported into the U.S. is 

also a factor in determining the savings 

that would have been realized because 

of the TRQ. Dollar value data effectively 

captures the price of such fabric and the 

dollar amount paid by the person. CBP 

has not been collecting this data in the 

context of its Wool Duty Refund 

Program. But in light of the statutory 

requirement to capture the savings that 

would have been realized for wool yarn, 

fiber or top imported into the U.S. had 

the duty suspension been in effect, the 

Secretary will collect the person’s 

reported dollar value and quantity of 

imports of wool yarn, fiber or top 

imported into the U.S. during the entire 

calendar year immediately preceding 

the payment. 

The Secretary has determined that the 

intent of the savings language in section 

12315 of the Farm Bill can be best 

realized by looking at what the person 

would have saved during the calendar 

year immediately preceding the 

payment. For example, the dollar value 

of the person’s imports wool yarn, fiber, 

or top in calendar year 2014 will be the 

basis for calculating the payment in 

2015 (in contrast to the proxy duty used 

for the 2015 payment). This allows the 

payment to address the ‘‘savings’’ in 

section 12315(e) of the Farm Bill as 

close to the real time experience of the 

person as is administratively possible 

yet still cover the full prior year’s 

imports. 

Other than with respect to the 2015 

payment calculated using a proxy duty 

rate as described above, the duty 

compensation payment under this 

section will be equal to 100% of the 

duty paid for wool yarn, fiber, or top of 

the kind described in subheadings 

9902.51.13 and 9902.51.14 imported in 

the calendar year immediately 

preceding the payment. 

The two HTS subheadings of 

imported wool yarn, fiber, or top 

covered by this payment are either 

imported directly by persons, in which 

case the person also directly paid the 

duty, or imported indirectly through a 

third party broker that directly paid the 

duty. The payment applies to persons 

that either directly or indirectly 

imported wool yarn, fiber, and top. If 

the import was through a third party 

broker, the person must so state in the 

affidavit prior to the payment, and 

provide any other information required 

by FAS. For persons that are indirect 

importers of wool yarn, fiber, or top, the 

dollar value of the imports reported in 

their affidavit will be subject to a 10% 

reduction by the Secretary. The reason 

for this reduction is that the broker that 

directly imported the wool yarn, fiber, 

or top is assumed to sell it to the person 

who submits the affidavit for an amount 

higher than the price merely increased 

by the applied duty. The 10% reduction 

is intended to compensate for that 

higher price, and make the reported 

price paid by indirect importers more 

equivalent to the price paid by direct 

importers. CBP also administers this 

10% reduction in the reported price 

paid by indirect importers as part of its 

administration of the Wool Duty Refund 

Program (which includes subheadings 

9902.51.13 and 9902.51.14). 

Persons that imported wool yarn, fiber 

or top directly are also required to 

submit to FAS as part of the affidavit 

package scanned copies of the CBP 

Form 7501 ‘‘Entry Summary’’ for the 

relevant calculations made in the 

affidavit. Persons that imported wool 

yarn, fiber or top indirectly are required 

to submit to FAS as part of the affidavit 

package invoices from third party 

brokers for the relevant calculations 

made in the affidavit. 

Persons applying for a payment must 

provide information required by the 

Secretary through annual affidavits. 

(4) Refund of Duties Paid on Imports of 

Certain Wool Products 

CBP is administering this payment to 

U.S. manufacturers and processors of 

wool for duties paid on the imported 

wool in 2000, 2001, and 2002 through 

calendar year 2015. FAS will continue 

this payment for calendar years 2016– 

2019, and will publish regulations later 

next year. The regulations for this 

payment will be published at 7 CFR 

1471.12. 

Effective Date and Notice and Comment 

We are issuing this final rule without 

prior notice and opportunity for 

comment. The Administrative 

Procedure Act exempts rules ‘‘relating 

to agency management or personnel or 

to public property, loans, grants, 

benefits, or contracts’’ from the statutory 

requirement for prior notice and 

opportunity for comment 5 U.S.C. 

553(a)(2). Accordingly, this rule may be 

made effective less than 30 days after 

publication in the Federal Register. 

However, we invite you to participate in 

this rulemaking by submitting written 

comments, data, or views. We will 

consider the comments we receive and 

may conduct additional rulemaking 

based on the comments. This rule 

allows FAS to provide adequate notice 

to eligible manufacturers about the new 

Pima Agriculture Cotton and Wool 

Apparel Manufacturers Trusts 

regulation so that they will be ready to 

begin filing for payments by March 15 

in the case of Agriculture Pima Trust 

payment, and by March 1 in the case of 

the several Agriculture Wool Trust 

payments. 

Executive Order 12630 

This Executive Order requires careful 

evaluation of governmental actions that 

interfere with constitutionally protected 

property rights. This rule does not 

interfere with any property rights and, 

therefore, does not need to be evaluated 

on the basis of the criteria outlined in 

Executive Order 12630. 

Executive Order 12866 

This final rule is issued in 

conformance with Executive Order 

12866 and Administrative Procedure 

Act (5 U.S.C. 553). It has been 

determined to be not significant for the 

purposes of Executive Order 12866 and 

was not reviewed by OMB for this 

purpose. A cost-benefit assessment of 

this rule was not completed. 

Executive Order 12372 

This final rule is not subject to 

Executive Order 12372, which requires 

intergovernmental consultation with 

State and local officials. See the notice 

related to 7 CFR part 3015, subpart V, 

published at 48 FR 29115 (June 24, 

1983). 

Executive Order 12988 

This final rule has been reviewed in 

accordance with Executive Order 12988. 

This rule would not preempt State or 

local laws, regulations, or policies 

unless they present an irreconcilable 

conflict with this rule. This rule would 

not be retroactive. 

Executive Order 13132 

This final rule has been reviewed 

under Executive Order 13132, 

‘‘Federalism.’’ The policies contained in 

this final rule do not have any 

substantial direct effect on States, on the 

relationship between the Federal 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government, nor does this final 

rule impose substantial direct 

compliance costs on State and local 

governments. Therefore, consultation 

with the States is not required. 


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Executive Order 13175 

This final rule has been reviewed for 

compliance with E.O. 13175. The 

policies contained in this final rule do 

not have tribal implications that 

preempt tribal law. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule because FAS is not 

required by 5 U.S.C. 553 or any other 

law to publish a notice of proposed 

rulemaking with respect to the subject 

matter of this rule. 

Civil Rights Impact Statement 

No major civil rights impact is likely 

to result from the announcement of this 

notice. It will not have a negative civil 

rights impact on very-low income, low 

income, and moderate income and 

minority populations. 

Environmental Assessment 

The environmental impacts of this 

rule have been considered in a manner 

consistent with the provisions of the 

National Environmental Policy Act 

(NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), and FAS regulations for 

compliance with NEPA (7 CFR part 

799). FAS has determined that NEPA 

does not apply to this rule and that no 

environmental assessment or 

environmental impact statement will be 

prepared. 

Unfunded Mandates Reform Act 

This final rule does not impose any 

enforceable duty or contain any 

unfunded mandate as described under 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA). Therefore, 

this rule is not subject to the 

requirements of sections 202 and 205 of 

UMRA. 

E-Government Act Compliance 

FAS 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, 

services and for other purposes. The 

forms, regulations, and other 

information collection activities 

required to be utilized by a person 

subject to this rule are available at: 

http://www.fas.usda.gov. 

List of Subjects in 7 CFR Part 1471 

Agricultural commodities, Imports. 

For the reasons set forth in the 

preamble, 7 CFR part 1471 is added to 

read as follows: 

PART 1471—PIMA AGRICULTURE 

COTTON TRUST FUND 

(AGRICULTURE PIMA TRUST) AND 

AGRICULTURE WOOL APPAREL 

MANUFACTURERS TRUST FUND 

(AGRICULTURE WOOL TRUST) 

Subpart A—Agriculture Pima Trust 

Sec. 

1471.1 Provisions common to this subpart. 

1471.2 Pima cotton payments. 

1471.3 Affidavit of producers of ring spun 

pima cotton yarn. 

1471.4 Affidavit of manufacturers of pima 

cotton shirts. 

1471.5 Affidavit of pima cotton trade 

association. 

Subpart B—Agriculture Wool Trust 

1471.10 Provisions common to this subpart. 

1471.11 Payments to manufacturers of 

certain worsted wool fabrics. 

1471.12 [Reserved] 

1471.13 Monetization of the wool tariff rate 

quota. 

1471.14 Wool yarn, wool fiber, and wool 

top duty compensation payment. 

Authority: Sections 501–506, Pub. L. 106– 

200, (114 Stat. 299–304); Section 4002, Pub. 

L. 108–429 (7 U.S.C. 7101 note); Section 

1633, Pub. L. 109–280 (120 Stat. 1166); 

Section 325, Pub. L. 110–343 (122 Stat. 

3875); Sections 12314 and 12315, Pub. L. 

113–79 (7 U.S.C. 2101 note and 7101 note). 

Subpart A—Agriculture Pima Trust 

§ 1471.1 Provisions common to this 

subpart. 

(a) Agriculture Pima Trust—(1) 

Establishment. The Agriculture Pima 

Trust has been established to provide 

funding for payments under this part. 

(2) Purpose. The purpose of the 

Agriculture Pima Trust is to reduce the 

injury to domestic manufacturers 

resulting from tariffs on cotton fabric 

that are higher than tariffs on certain 

apparel articles made of cotton fabric. 

(3) Funding availability. $16,000,000 

will be available annually for eligible 

payments authorized under subpart A of 

this part. 

(4) Definitions. As used in this 

subpart: 

Agriculture Pima Trust means the 

Pima Agriculture Cotton Trust Fund. 

CCC means the Commodity Credit 

Corporation. 

FAS means the Foreign Agricultural 

Service. 

Secretary means the Secretary of 

Agriculture. 

Agriculture Pima Trust means the 

Pima Agriculture Cotton Trust Fund. 

U.S. means the United States of 

America. 

(b) Other provisions common to 

subpart A of this part—(1) Affidavits. 

FAS shall annually, not later than 

February 15 of the year of the applicable 

payment, make affidavits available on 

the FAS Web site, which can be found 

at http://www.fas.usda.gov/. Affidavits 

must be submitted electronically to 

pimawool@fas.usda.gov. 

(2) Filing deadline. Any person filing 

an affidavit under this part for a 

particular year must file the affidavit for 

such calendar year, during calendar 

years 2015 through 2018, not later than 

March 15 of the applicable calendar 

year. 

(3) Basic information. In addition to 

information required in §§ 1471.3, 

1471.4, and 1471.5, as applicable, every 

person applying for a payment must 

provide the following information, 

applicable to the year for which a 

payment is sought: 

(i) The current company name, 

address, contact, phone number of the 

person; 

(ii) The name and address of each 

plant or location of the person during 

the calendar year immediately 

preceding the payment; and 

(iii) A W–9 providing the Federal tax 

identification number of the person; 

(4) Standard Form 1199A. Every 

person claiming a payment must 

provide Standard Form 1199A, a direct 

deposit sign-up form, to facilitate any 

transfer of funds. 

(5) Affirmation. Every person 

applying for a payment must affirm in 

its affidavit that ‘‘all information 

contained in the application is complete 

and correct and that the information 

does not contain a false claim, 

statement, or representation.’’ 

(6) Document retention. All persons 

receiving a payment under this part 

must maintain all pertinent 

documentation for 3 years after the year 

of receipt of the payment. 

(7) False statements. Persons 

providing false or fraudulent claims, or 

persons making materially false 

statements or representations in their 

affidavit, are subject to civil or criminal 

penalties pursuant to 18 U.S.C. 1001. 

(8) Confidentiality. Specific business 

information that is marked ‘‘business 

confidential’’ will be protected from 

disclosure to the full extent permitted 

by law. 

(9) Review of affidavits. Affidavits 

will be reviewed to determine whether 

they are complete and responsive to the 

content and form of affidavit 

requirements under this part. 

(10) Finality of determinations by 

Secretary. A determination by the 

Secretary about a payment under this 

part shall be final and is not subject to 

appeal or protest. 

(11) Timing of payments. A payment 

for which a person is eligible under this 

part will be disbursed in each of 


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calendar years 2015 through 2018, not 

later than April 15 of the applicable 

year. 

(12) Sequester. Payments covered by 

this part shall be subject to sequester of 

payments, if required by law. 

§ 1471.2 Pima cotton payments. 

From available funds in the 

Agriculture Pima Trust, CCC will 

annually make payments for each of 

calendar years 2015 through 2018 as 

follows: 

(a) Twenty-five percent of the 

amounts in the Agriculture Pima Trust 

shall be paid to one or more nationally 

recognized associations established for 

the promotion of pima cotton for use in 

textile and apparel goods, as determined 

by the Secretary, during the calendar 

year immediately preceding the 

payment. 

(b) Twenty-five percent of the 

amounts in the Agriculture Pima Trust 

shall be paid to yarn spinners of pima 

cotton that produce ring spun cotton 

yarns in the U.S. during 2013 and the 

calendar year immediately preceding 

the payment, to be allocated to each 

yarn spinner in an amount that bears the 

same ratio as 

(1) The yarn spinner’s production of 

ring spun cotton yarns in 2013, 

measuring less than 83.33 decitex 

(exceeding 120 metric number) from 

pima cotton in single and plied form 

during calendar year 2013, bears to 

(2) The production of the yarns 

described in paragraph (b)(1) of this 

section during calendar year 2013 by all 

yarn spinners that qualify under this 

paragraph (b). 

(c) Fifty percent of the amounts in the 

Agriculture Pima Trust shall be paid to 

manufacturers that, during the calendar 

year immediately preceding the 

payment, certify, pursuant to the 

affidavit under § 1471.4, they used 

imported pima cotton fabric during 

calendar year 2013 to produce such 

shirts, to be allocated to each 

manufacturer in an amount that bears 

the same ratio as 

(1) The dollar value (excluding duty, 

shipping, and insurance of imported 

woven pima cotton shirting fabric of 80s 

or higher count and 2-ply in warp used 

by the manufacturer during calendar 

year 2013 to produce men’s and boys’ 

pima cotton shirts, bears to 

(2) The dollar value (excluding duty, 

shipping, and insurance of the fabric 

described in paragraph (c)(1) of this 

section used to manufacture men’s and 

boy’s pima cotton shirts in 2013 by all 

manufacturers that qualify under this 

paragraph (c). 

§ 1471.3 Affidavit of producers of ring 

spun pima cotton yarn. 

In addition to reporting and 

information requirements in § 1471.1, 

the affidavit of a yarn spinner that is a 

producer of ring spun cotton yarn must 

be an affidavit provided annually by an 

officer of the yarn spinner that produces 

ring spun yarns affirming that: 

(a) During the calendar year 

immediately preceding the payment and 

during calendar year 2013, the yarn 

spinner used pima cotton to produce 

ring spun cotton yarns in the U.S. 

measuring less than 83.33 decitex 

(exceeding 120 metric number), in 

single and plied form; 

(b) During 2013, the yarn spinner 

actually produced the quantity, 

measured in pounds, of ring spun cotton 

yarns measuring less than 83.33 decitex 

(exceeding 120 metric number), in 

single and plied form; and 

(c) The yarn spinner continues to 

maintain supporting documentation 

about such production during calendar 

year 2013 which shows the actual 

quantity of such yarns produced, and 

evidencing the yarns as ring spun pima 

cotton yarns, measuring less than 83.33 

decitex (exceeding 120 metric number), 

in single and plied form. 

§ 1471.4 Affidavit of manufacturers of 

pima cotton shirts. 

(a) In general. In addition to 

applicable information requirements in 

§ 1471.1, an affidavit of a manufacturer 

that is a producer of men’s and boys’ 

pima cotton shirts must be an affidavit 

provided annually by an officer of the 

manufacturer which affirms the 

following information 

(1) During the calendar year 

immediately preceding the payment and 

during calendar year 2013, the 

manufacturer used imported pima 

cotton fabric to cut and sew men’s and 

boys’ pima cotton shirts in the U.S.; 

(2) During calendar year 2013, the 

dollar value of imported woven pima 

cotton shirting fabric of 80s or higher 

count and 2-ply in warp purchased and 

used by the manufacturer to cut and sew 

men’s and boys’ woven pima cotton 

shirts in the U.S.; 

(3) The manufacturer continues to 

maintain invoices and other supporting 

documentation (such as price lists and 

other technical descriptions of the fabric 

qualities) showing the dollar value of 

such fabric purchased, the date of 

purchase, and evidencing the fabric as 

woven pima cotton fabric of 80s or 

higher count and 2-ply in warp; and 

(4) The imported pima cotton fabric 

purchased in 2013 and in the calendar 

year immediately preceding the 

payment was suitable for use in the 

manufacturing of men’s and boys’ 

cotton shirts. 

(b) Date of purchase. For purposes of 

the affidavit under paragraph (a) of this 

section, the date of purchase shall be the 

invoice date, and the dollar value shall 

be determined excluding duty, 

shipping, and insurance. 

§ 1471.5 Affidavit of pima cotton trade 

associations. 

In addition to applicable information 

requirements in § 1471.1, trade 

associations filing a claim for a payment 

must electronically provide a statement 

which states whether, during the 

calendar year immediately preceding 

the payment and in calendar year 2014, 

they were, as determined by the 

Secretary, a domestic nationally 

recognized association established and 

operating for the promotion of pima 

cotton for domestic use in textile and 

apparel goods. 

Subpart B—Agriculture Wool Trust 

§ 1471.10 Provisions common to this 

subpart. 

(a) Agriculture wool trust—(1) 

Establishment. The Agriculture Wool 

Trust has been established to provide 

funding for payments under this part. 

(2) Purpose. The purpose of the 

Agriculture Wool Trust is to reduce the 

injury to domestic manufacturers 

resulting from tariffs on wool fabric that 

are higher than tariffs on certain apparel 

articles made of wool fabric. 

(3) Funding availability. Not more 

than $30,000,000 will be available 

annually for payments authorized under 

this part. 

(4) Definitions. As used in this 

subpart: 

Agriculture Wool Trust means the 

Agriculture Wool Apparel 

Manufacturers Trust Fund. 

U.S. means the United States of 

America. 

CCC means the Commodity Credit 

Corporation. 

FAS means the Foreign Agricultural 

Service. 

HTS means the Harmonized Tariff 

Schedule of the United States. 

Secretary means the Secretary of 

Agriculture. 

TRQ means Tariff Rate Quota. 

(b) Provisions common to this part— 

(1) Affidavits. FAS shall annually, not 

later than February 15 of the year of the 

applicable payment, make affidavits 

available on the FAS Web site, which 

can be found at http://

www.fas.usda.gov/. Affidavits must be 

submitted electronically to: pimawool@

fas.usda.gov. 

(2) Filing deadline. Any person filing 

an affidavit under this part for a 


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particular year must file the affidavit for 

such calendar year, during calendar 

years 2015 through 2019, not later than 

March 1 of such year. 

(3) Required information. In addition 

to information required in §§ 1471.11, 

1471.13, and 1471.14, as applicable, 

every person applying for a payment 

under this part must provide the 

following information applicable to the 

year for which a payment is sought: 

(i) The current company name, 

address, contact, phone number of the 

person; 

(ii) The name and address of each 

plant or location of the person in the 

year immediately preceding the 

payment; and 

(iii) A W–9 providing the Federal tax 

identification number of the person. 

(4) Standard Form 1199A. Every 

person seeking a payment must also 

provide Standard Form 1199A, a direct 

deposit sign-up form, to facilitate any 

transfer of funds. 

(5) Affirmation. A person filing an 

affidavit under this part must affirm that 

‘‘all information contained in the 

application is complete and correct and 

that the information does not contain a 

false claim, statement, or 

representation.’’ 

(6) Document retention. All persons 

receiving a payment under this part 

must maintain all pertinent 

documentation for three years after the 

year of receipt of the payment. 

(7) False statements. Persons 

providing false or fraudulent claims or 

making materially false statements or 

representations are subject to civil or 

criminal penalties pursuant to 18 U.S.C. 

1001. 

(8) Confidential information. Specific 

business information provided in 

affidavits that is marked ‘‘business 

confidential’’ will be protected from 

disclosure to the full extent permitted 

by law. 

(9) Review of affidavits. Affidavits 

will be reviewed to determine whether 

they are complete and responsive to the 

content and form of affidavit 

requirements in this part. 

(10) Finality of determination by the 

Secretary. A determination by the 

Secretary about a payment under this 

part shall be final and is not subject to 

appeal or protest. 

(11) Timing of payments. A payment 

for which a person eligible under this 

part will be disbursed in each of 

calendar years 2015 through 2019 not 

later than April 15 of the applicable 

year. 

(12) Proration and sequester. 

Payments covered by this part will be 

subject to proration in the event that 

insufficient funds exist in the 

Agriculture Wool Trust during the year 

of the payment, and will be subject to 

sequester, if required by law. 

(13) HTS subheadings. All references 

to subheadings of the HTS in this part 

are to the subheadings as described in 

the HTS in 2014. 

§ 1471.11 Payments to manufacturers of 

certain worsted wool fabrics. 

(a) Definitions. In this section the 

following definitions apply: 

Eligible person. The term ‘‘eligible 

person’’ means a manufacturer in the 

U.S. of qualifying worsted wool fabric 

during the calendar year immediately 

preceding the payment and during each 

of calendar years 1999, 2000, and 2001. 

Qualifying worsted wool fabric. The 

term ‘‘qualifying worsted wool fabric’’ 

means a worsted wool fabric containing 

at least 85% by weight worsted wool of 

the kind described in subheading 

9902.51.11 or 9902.51.15 of the 2014 

HTS that, during the calendar year 

immediately preceding the payment and 

during each of calendar years 1999, 

2000, and 2001, was manufactured by 

an eligible person in the United States. 

(b) Distribution of funds. From 

amounts in the Agriculture Wool Trust, 

CCC will annually make payments for 

each of calendar years 2015 through 

2019 to eligible persons that 

manufactured qualifying worsted wool 

fabric as provided in paragraphs (b)(1) 

or (2) of this section. 

(1) Payments for production under 

subheading 9902.51.11 of the HTS—(i) 

In general. Eligible persons that 

manufactured qualifying worsted wool 

fabric during calendar years 1999, 2000, 

and 2001 that is of the kind described 

in subheading 9902.51.11 of the HTS are 

eligible for a payment as provided in 

paragraph (b)(1)(ii) of this section. 

(ii) Payment amounts. A total of 

$2,666,000 will be allocated annually 

among eligible persons covered by this 

paragraph on the basis of the percentage 

of each eligible person’s total 

production (actual production, not 

estimates) for the calendar year 

immediately preceding the payment of 

qualifying worsted wool fabric 

described in paragraph (b)(1)(i) of this 

section in relation to the total 

production for the calendar year 

immediately preceding the payment of 

such fabric by all eligible persons who 

qualify for payments under this 

paragraph. 

(2) Payments for production under 

subheading 9902.51.15—(i) In general. 

Eligible persons that manufactured 

qualifying worsted wool fabric during 

calendar years 1999, 2000, and 2001 

that conforms in composition to 

subheading 9902.51.15 of the HTS are 

eligible for a payment as provided in 

paragraph (b)(2)(ii) of this section. 

(ii) Payment amounts. A total of 

$2,666,000 will be allocated annually 

among eligible persons covered by this 

paragraph on the basis of the percentage 

of each eligible person’s total 

production (actual production, not 

estimates) for the calendar year 

immediately preceding the payment of 

qualifying worsted wool fabric 

described in paragraph (b)(2)(i) of this 

section in relation to the total 

production for the calendar year 

immediately preceding the payment of 

such fabric by all eligible persons who 

qualify for payments under this 

paragraph. 

(c) Annual affidavit—(1) In general. 

An eligible person applying for a 

payment under this section shall 

comply with all applicable reporting 

requirements of this section and of 

§ 1471.10. 

(2) Specific business information. An 

eligible person shall, for the calendar 

year immediately preceding the 

payment and for each of calendar years 

1999, 2000, and 2001, annually report 

the actual dollar value and the actual 

quantity (linear yards) of qualifying 

worsted wool fabric that was 

manufactured. 

(3) Manufacturing of wool. When 

reporting the annual dollar value and 

quantity of imports of qualifying 

worsted wool fabric, and the annual 

dollar value and quantity of the 

qualifying wool fabric that was 

manufactured, an eligible person may 

either have manufactured the qualifying 

worsted wool on its own behalf or had 

another person manufacture the 

qualifying worsted wool fabric, 

provided the eligible person owned the 

qualifying worsted wool fabric at the 

time of manufacture. 

§ 1471.12 [Reserved] 

§ 1471.13 Monetization of the wool tariff 

rate quota. 

(a) Definitions. In this section the 

following definitions apply: 

(1) Lower duty rate. The term ‘‘lower 

duty rate’’ means the duty rate as 

codified in the 2014 HTS that would 

have been applicable to qualifying 

worsted wool fabric of the kind 

described in subheadings 9902.51.11, 

9902.51.15, and 9902.51.16 of the 2014 

HTS prior to the expiration of the Wool 

TRQ on December 31, 2014. 

(2) Eligible person—(i) In general. The 

term ‘‘eligible person’’ means a 

manufacturer (or a successor-in-interest 

to the manufacturer) in the U.S. during 

the calendar year immediately 

preceding the payment that: 


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(A) Imported qualifying worsted wool 

fabric; and 

(B) Used the imported qualifying 

worsted wool fabric 

(1) In the case of wool of the kind 

described in subheadings 9902.51.11 or 

9902.51.15 of the 2014 HTS, to produce 

worsted wool suits, suit-type jackets and 

trousers for men and boys; or 

(2) In the case of wool fabric of the 

kind described in subheading 

9902.51.16 of the 2014 HTS, used such 

wool fabric in manufacturing. 

(ii) Successor-in-interest. If a person 

satisfies the criteria for becoming a 

successor-in-interest to an eligible 

person under paragraph (a)(4) of this 

section, the person shall succeed to the 

status of the eligible person and become 

eligible for the payment. 

(3) Qualifying worsted wool fabric. 

The term ‘‘qualifying worsted wool 

fabric’’ means imported worsted wool 

fabric containing at least 85% by weight 

worsted wool of the kind described in 

subheadings 9902.51.11, 9902.51.15, or 

9902.51.16 of the 2014 HTS that, during 

the calendar year immediately 

preceding the payment was: 

(i) Imported by an eligible person in 

the U.S.; and 

(ii) Used by the eligible person in the 

U.S. 

(A) In the case of wool fabric of the 

kind described in subheadings 

9902.51.11 or 9902.51.15 of the HTS, to 

produce worsted wool suits, suit-type 

jackets and trousers for men and boys; 

or 

(B) In the case of wool fabric of the 

kind described in subheading 

9902.51.16 of the HTS, was used in 

manufacturing. 

(4) Successor-in-interest. The term 

‘‘successor-in-interest’’ means a person 

that is eligible to claim a payment under 

this section as if the person were the 

original eligible person, without regard 

to section 3727, title 31, United States 

Code because of— 

(i) An assignment of the claim; 

(ii) An assignment of the original 

eligible person’s right to manufacture 

under the same trade name; or 

(iii) A reorganization of the eligible 

person. 

(b) Purposes. The purposes of a TRQ 

monetization payment are to provide an 

eligible person— 

(1) Compensation for termination of 

the TRQ for qualifying worsted wool 

fabric; and 

(2) A payment that is equivalent to the 

amount the eligible person would have 

saved during the calendar year for 

imports of qualifying worsted wool 

fabric if the lower duty rate under the 

applicable 2014 HTS subheading(s) of a 

qualifying worsted wool fabric were in 

effect. 

(c) Calculation of monetized TRQ 

payment. A payment will be established 

by calculating, as provided in 

paragraphs (c)(1) through (4) of this 

section, the savings that would have 

been realized by the eligible person for 

imports of qualifying worsted wool 

fabric of the kind described in one of the 

three subheadings 9902.51.11, 

9902.51.15, or 9902.51.16 of the 2014 

HTS (as applicable), had the lower duty 

rate been in effect. 

(1) Payment formula. Except as 

provided in paragraph (c)(2) of this 

section, a payment shall be calculated 

by 

(i) Establishing the reported dollar 

value of imported worsted wool fabric, 

for each of the 2014 HTS subheadings 

of worsted wool fabric, during the 

calendar year immediately preceding 

the payment; 

(ii) Subtracting the duty rate 

(converted to numeric value) for each 

applicable 2014 HTS subheading of 

worsted wool fabric that would have 

been paid in calendar year 2014 from 

the duty rate (converted to numeric 

value) that was actually paid in the 

calendar year immediately preceding 

the payment; 

(iii) For each applicable 2014 HTS 

subheading of worsted wool fabric, 

multiplying the numeric values 

described in paragraphs (c)(1)(i) and (ii) 

of this section; and 

(iv) Adding each product obtained in 

paragraph (c)(1)(iii) of this section. 

(2) Exception for 2015 payment. In the 

case of the payment to be made in 2015, 

for purposes of the calculation 

component described in paragraph 

(c)(1)(ii) of this section the duty rate 

applicable in 2015 shall be deemed the 

duty rate actually paid in 2014. The 

reason for this exception for the 2015 

payment is that 2014 is both the last 

year in which the lower duty rate was 

still in effect, and is also the calendar 

year immediately preceding the 

payment (the payment is in 2015). As a 

result, for the 2015 payment, a proxy is 

necessary for the higher duty rate in the 

calendar year immediately preceding 

the payment. 

(3) 2015 payment. A payment in 2015 

shall be calculated by 

(i) Establishing the reported dollar 

value of imported worsted wool fabric 

during the calendar year immediately 

preceding the payment under the 2014 

HTS subheading of worsted wool fabric; 

(ii) Subtracting the lower duty rate 

(converted to numeric value) that would 

have been applicable to the 2014 HTS 

subheading of worsted wool fabric from 

the duty rate applicable to that HTS 

subheading in 2015 (converted to 

numeric value); 

(iii) Multiplying the numeric values 

described in paragraphs (c)(3)(i) and (ii) 

of this section); and(iv) Adding the 

product obtained in paragraph (c)(3)(iii) 

of this section to the product obtained 

for every applicable subheading of 

worsted wool fabric. 

(4) 2016–2019 payments. A payment 

in each of years 2016–2019 shall be 

calculated by 

(i) Establishing the reported dollar 

value of imported worsted wool fabric 

during the calendar year immediately 

preceding the payment under the 2014 

HTS subheading of worsted wool fabric; 

(ii) Subtracting the lower duty rate 

(converted to numeric value) that would 

have been applicable to the 2014 HTS 

subheading of worsted wool fabric from 

the duty rate applicable to the calendar 

year preceding the payment (converted 

to numeric value); 

(iii) Multiplying the numeric values 

described in paragraphs (c)(4)(i) and (ii) 

of this section; and 

(iv) Adding the product obtained in 

paragraph (c)(3)(iii) of this section to the 

product obtained for every applicable 

subheading of worsted wool fabric. 

(d) Annual affidavit—(1) In general. 

An eligible person applying for a 

payment under this section shall 

comply with all applicable reporting 

requirements of this section and of 

§ 1471.10. 

(2) Specific business information—(i) 

Imports and production.—An eligible 

person shall, for the entire calendar year 

immediately preceding the payment, 

report the actual dollar value and the 

actual quantity of 

(A) Imports into the U.S. of qualifying 

worsted wool fabric (square meters); and 

(B) The qualifying worsted wool 

fabric used by the eligible person in the 

U.S. 

(1) In the case of wool of the kind 

described in subheadings 9902.51.11 or 

9902.51.15 of the 2014 HTS, to produce 

worsted wool suits, suit-type jackets and 

trousers for men and boys (units); or 

(2) In the case of wool of the kind 

described in subheading 9902.51.16 of 

the 2014 HTS, such wool that was 

manufactured (square meters). 

(ii) Direct and indirect importers—(A) 

In general. Eligible persons that import 

qualifying worsted wool fabric through 

a third party broker are considered to be 

indirect importers of the qualifying 

worsted wool fabric. Persons that 

directly import qualifying worsted wool 

fabric and pay the import duty for such 

wool are considered to be direct 

importers of the qualifying worsted 

wool fabric. 

(B) Reported dollar value. Eligible 

persons must state in their annual 

affidavit whether, in the calendar year 


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Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations 12331 

immediately preceding the payment, 

they were direct or indirect importers, 

and the dollar value of the imported 

qualifying worsted wool fabric. The 

reported dollar value of such imports by 

indirect importers will be subject to a 

10% reduction. 

(C) Affirmation. An eligible person 

shall annually affirm in the affidavit 

that, in the calendar year immediately 

preceding the payment, in the U.S., the 

eligible person: 

(1) Directly or indirectly imported the 

qualifying worsted wool fabric into the 

U.S.; 

(2) Used that fabric to produce in the 

U.S. worsted wool suits, suit jackets, 

and trousers for men and boys (or, in the 

case of qualifying worsted wool fabric of 

the kind described in the 2014 HTS 

subheading 9902.51.16, for 

manufactured in the U.S.); and 

(3) Imported qualifying worsted wool 

fabric from the country of origin 

identified in the affidavit. 

(iii) Import documentation—(A) 

Direct imports. Applicable to the 

calendar year immediately preceding 

payment, an eligible person that directly 

imported qualifying worsted wool fabric 

is required to submit to FAS as part of 

the affidavit package scanned copies of 

CBP Form 7501 ‘‘Entry Summary’’ for 

the relevant calculations made in the 

affidavit. 

(B) Indirect imports. Applicable to the 

calendar year immediately preceding 

payment, an eligible person that 

indirectly imported qualifying worsted 

wool fabric is required to submit to FAS 

as part of the affidavit package invoices 

from third party brokers as required in 

the affidavit. 

(3) Production of garments or 

manufacturing of qualifying worsted 

wool fabric—(i) Production of 

garments—(A) In general. When 

reporting the annual dollar value and 

quantity of imported qualifying worsted 

wool fabric, and the annual dollar value 

and quantity of the qualifying worsted 

wool fabric that was cut and sewn, an 

eligible person may either have cut and 

sewn the wool on its own behalf or had 

another person cut and sew the wool on 

behalf of the eligible person, provided 

the eligible person owned the wool at 

the time it was cut and sewn. 

(B) Applicability. This paragraph 

applies to wool of the kind described in 

subheadings 9902.51.11 and 9902.51.15 

of the 2014 HTS. 

(ii) Manufacturing of qualifying 

worsted wool fabric—(A) In general. 

When reporting the annual dollar value 

and quantity of imported qualifying 

worsted wool fabric, and the annual 

dollar value and quantity of the 

qualifying worsted wool fabric that was 

manufactured, an eligible person may 

either have manufactured the wool on 

its own behalf or had another person 

manufacture the wool, provided the 

eligible person owned the wool at the 

time of manufacture. 

(B) Applicability. This paragraph 

applies to wool of the kind described in 

subheading 9902.51.16 of the 2014 HTS. 

§ 1471.14 Wool yarn, wool fiber, and wool 

top duty compensation payment. 

(a) Definitions. In this section the 

following definitions apply: 

(1) Duty. The term ‘‘duty’’ means the 

duty rate codified in the HTS for a year 

that is applicable to qualifying wool of 

the kind described in subheadings 

9902.51.13 and 9902.51.14 of the 2014 

HTS. 

(2) Eligible person—(i) In general. The 

term ‘‘eligible person’’ means a 

manufacturer (or a successor-in-interest 

to the manufacturer) in the U.S. during 

the calendar year immediately 

preceding the payment; that 

(A) Imported qualifying wool; and 

(B) Manufactured the qualifying wool. 

(ii) Successor-in-interest. If a person 

satisfies the criteria for becoming a 

successor-in-interest to an eligible 

person under paragraph (a)(4) of this 

section, the person shall succeed to the 

status of the eligible person and become 

eligible for the payment. 

(3) Qualifying wool. The term 

‘‘qualifying wool’’ means imported wool 

yarn of the kind described in 

subheading 9902.51.13 of the 2014 HTS, 

and imported wool fiber or wool top of 

the kind described in subheading 

9902.51.14 of the 2014 HTS, that, during 

the calendar year immediately 

preceding the payment was 

(i) Imported, directly or indirectly, by 

an eligible person (or a successor-ininterest) into the U.S.; and 

(ii) Manufactured by the eligible 

person in the U.S. 

(4) Successor-in-interest. The term 

‘‘successor-in-interest’’ means a person 

that is eligible to claim a payment under 

this section as if the person were the 

original eligible manufacturer, without 

regard to section 3727, title 31, U.S. 

Code because of 

(i) An assignment of the claim; 

(ii) An assignment of the eligible 

person’s right to manufacture under the 

same trade name; or 

(iii) A reorganization of the eligible 

person. 

(b) Import duties. The duties on 

imports of qualifying wool were 

suspended in their entirety in section 

503 of the Trade and Development Act 

of 2000. The suspension of the duties 

for both HTS subheadings of qualifying 

wool was extended through December 

31, 2014. These duties were reinstated 

as of January 1, 2015. 

(c) Duty compensation payment—(1) 

Calculation of payment. For each of the 

2015–2019 calendar years the duty 

compensation payment of an eligible 

person will be established by 

calculating, as provided in paragraphs 

(c)(2) through (5) of this section, the 

savings that would have been realized 

by the eligible person for imports of 

qualifying wool had the duty 

suspension been in effect. 

(2) Savings for each subheading. The 

savings realized by an eligible person 

for imports of qualifying wool under a 

HTS subheading covered by this section 

shall be obtained by multiplying 

(i) The reported dollar value of 

imports under a HTS subheading during 

the calendar year immediately 

preceding the payment; and 

(ii) Except as provided in paragraph 

(c)(5) of this section, the duty applicable 

to that HTS subheading in the calendar 

year preceding the payment, converted 

to numeric value. 

(3) Sum of subheading savings. The 

product obtained in paragraph (c)(2) of 

this section for imports of qualifying 

wool previously described under each 

HTS subheading shall be added to the 

savings obtained for imports under the 

other HTS subheading (as applicable). 

(4) Duty compensation payment 

amount. The sum obtained in paragraph 

(c)(3) of this section shall equal the 

annual duty compensation payment for 

the eligible person for the applicable 

calendar year. 

(5) Exception for 2015 payment. In the 

case of the 2015 payment, for purposes 

of the calculation component described 

in paragraph (c)(2) of this section the 

duty rate applicable in 2015 shall be 

deemed the duty rate actually paid in 

2014. The reason for this exception for 

the 2015 payment is that 2014 is both 

the last year in which the duty 

suspension was still in effect, and is 

also the calendar year immediately 

preceding the payment (the payment is 

in 2015). As a result, for the 2015 

payment, a proxy is necessary for the 

higher duty rate in the calendar year 

immediately preceding the payment. 

(d) Annual affidavit required—(1) In 

general. An eligible person applying for 

a payment under this section shall 

comply with all applicable reporting 

requirements described in this section 

and § 1471.10. 

(2) Specific business information—(i) 

Imports and production. An eligible 

person shall, for the calendar year 

immediately preceding the payment, 

report the actual dollar value and the 

actual quantity of: 


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12332 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations 

(A) Imports into the U.S. of qualifying 

wool by the eligible person; and 

(B) Such qualifying wool that was 

manufactured in the U.S. by the eligible 

person. 

(ii) Direct and indirect importers—(A) 

In general. Eligible persons that import 

qualifying wool through a third party 

broker are considered to be indirect 

importers of the qualifying wool. 

Persons that directly import qualifying 

wool and pay the import duty for such 

wool are considered to be direct 

importers of the qualifying wool. 

(B) Reported dollar value. Eligible 

persons must state in their annual 

affidavit whether, in the calendar year 

immediately preceding the payment, 

they were direct or indirect importers, 

and the dollar value of the imported 

qualifying wool. The reported dollar 

value of imports by indirect importers 

will be subject to a 10% reduction. 

(C) Affirmation. An eligible person 

shall annually affirm in the affidavit 

that, in the calendar year immediately 

preceding the payment, the eligible 

person 

(1) Directly or indirectly imported the 

qualifying wool into the U.S.; 

(2) Manufactured the qualifying wool 

in the U.S.; and 

(3) Imported qualifying wool from the 

country of origin identified in the 

affidavit. 

(iii) Import documentation—(A) 

Direct imports. Applicable to the 

calendar year immediately preceding 

the payment, an eligible person that 

directly imported qualifying wool is 

required to submit to FAS as part of the 

affidavit package scanned copies of CBP 

Form 7501 ‘‘Entry Summary’’ for the 

relevant calculations made in the 

affidavit. 

(B) Indirect imports. Applicable to the 

calendar year immediately preceding 

the payment, an eligible person that 

indirectly imported qualifying wool is 

required to submit to FAS as part of the 

affidavit package invoices from third 

party brokers for the relevant 

calculations made in the affidavit. 

(3) Manufacture of qualifying wool. 

When reporting the annual dollar value 

and quantity of imported qualifying 

wool, and the annual dollar value and 

quantity of the qualifying wool that was 

manufactured, an eligible person may 

either have manufactured the qualifying 

wool on its own behalf or had another 

person manufacture the qualifying wool, 

provided the eligible person owned the 

qualifying wool at the time of 

manufacture. 

Dated: February 25, 2015. 

Phil C. Karsting, 

Administrator, Foreign Agricultural Service, 

and Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2015–04385 Filed 3–6–15; 8:45 am] 

BILLING CODE 3410–10–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0347; Directorate 

Identifier 2013–NM–173–AD; Amendment 

39–18109; AD 2015–04–07] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

The Boeing Company Model 767–200 

and –300 series airplanes equipped with 

Pratt & Whitney Model JT9D or PW4000 

engines. This AD was prompted by a 

report of several cases of low hydraulic 

pressure or loss of electrical power to 

the alternating current motor pump 

(ACMP) on the left engine. This AD 

requires inspecting for damage of the 

wiring bundles in the left engine’s strut 

and corrective actions if necessary, and 

installing new wire support brackets 

and bundle clamps. We are issuing this 

AD to detect and correct chafed wire 

bundles due to rubbing against structure 

or a hydraulic piping elbow, which 

could result in electrical arcing in a 

flammable fluid leakage zone, and 

provide a possible ignition source for 

fuel vapors and hydraulic fluids. Ignited 

fuel vapors or hydraulic fluid in an area 

without a fire detection or suppression 

system could result in an uncontained 

engine strut fire and structural damage 

to the engine strut. 

DATES: This AD is effective April 13, 

2015. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of April 13, 2015. 

ADDRESSES: For service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data 

& Services Management, P.O. Box 3707, 

MC 2H–65, Seattle, WA 98124–2207; 

telephone 206–544–5000, extension 1; 

fax 206–766–5680; Internet https://

www.myboeingfleet.com. You may view 

this referenced service information at 

the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue SW., 

Renton, WA. For information on the 

availability of this material at the FAA, 

call 425–227–1221. It is also available 

on the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2014– 

0347. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2014– 

0347; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Docket Management Facility, U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Philip Sheridan, Senior Aerospace 

Engineer, Systems and Equipment 

Branch, ANM–130S, FAA, Seattle 

Aircraft Certification Office, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

phone: 425–917–6441; fax: 425–917– 

6590; email: philip.sheridan@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to certain The Boeing Company 

Model 767–200 and –300 series 

airplanes equipped with Pratt & 

Whitney Model JT9D or PW4000 

engines. The NPRM published in the 

Federal Register on June 30, 2014 (79 

FR 36680). The NPRM was prompted by 

a report of several cases of low 

hydraulic pressure or loss of electrical 

power to the ACMP on the left engine. 

The NPRM proposed to require 

inspecting for damage of the wiring 

bundles in the left engine’s strut and 

corrective actions if necessary, and 

installing new wire support brackets 

and bundle clamps. We are issuing this 

AD to detect and correct chafed wire 

bundles due to rubbing against structure 

or a hydraulic piping elbow, which 

could result in electrical arcing in a 

flammable fluid leakage zone, and 

provide a possible ignition source for 

fuel vapors and hydraulic fluids. Ignited 

fuel vapors or hydraulic fluid in an area 

without a fire detection or suppression 


rmajette on DSK2TPTVN1PROD with RULES