39548 Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations 

that is specifically prohibited by law or 

required by Executive order to be kept 

secret in the interest of national defense 

or foreign affairs, unless such 

information is disclosed to Congress, the 

Special Counsel, the Inspector General 

of an agency, or an employee designated 

by the head of the agency to receive it. 

(c) Other protected activity means any 

of the following: 

(1) The exercise of any appeal, 

complaint, or grievance right granted by 

any law, rule, or regulation with regard 

to remedying a violation of 5 U.S.C. 

2302(b)(8), i.e., retaliation for 

whistleblowing; 

(2) Testifying for or otherwise 

lawfully assisting any individual in the 

exercise of any right granted by any law, 

rule, or regulation; 

(3) Cooperating with or disclosing 

information to Congress, the Inspector 

General of an agency, or the Special 

Counsel, in accordance with applicable 

provisions of law; or 

(4) Refusing to obey an order that 

would require the individual to violate 

a law. 

* * * * * 

(f) Reasonable belief. An employee or 

applicant may be said to have a 

reasonable belief when a disinterested 

observer with knowledge of the 

essential facts known to and readily 

ascertainable by the employee or 

applicant could reasonably conclude 

that the actions of the Government 

evidence the violation, mismanagement, 

waste, abuse, or danger in question. 

■ 17. Section 1209.6 is amended by 

revising paragraphs (a)(4) and (a)(5)(ii) 

to read as follows: 

§ 1209.6 Content of appeal; right to 

hearing. 

(a) * * * 

(4) A description of each disclosure 

evidencing whistleblowing or other 

protected activity as defined in 

§ 1209.4(b) of this part; and 

(5) * * * 

(ii) The personnel action was or will 

be based wholly or in part on the 

whistleblowing disclosure or other 

protected activity, as described in 

§ 1209.4(b) of this part. 

* * * * * 

■ 18. Section 1209.7 is revised to read 

as follows: 

§ 1209.7 Burden and degree of proof. 

(a) Subject to the exception stated in 

paragraph (b) of this section, in any case 

involving a prohibited personnel 

practice described in 5 U.S.C. 2302(b)(8) 

or (b)(9)(A)(i), (B), (C), or (D), the Board 

will order appropriate corrective action 

if the appellant shows by a 

preponderance of the evidence that the 

disclosure or other protected activity 

was a contributing factor in the 

personnel action that was threatened, 

proposed, taken, or not taken against the 

appellant. 

(b) However, even where the 

appellant meets the burden stated in 

paragraph (a) of this section, the Board 

will not order corrective action if the 

agency shows by clear and convincing 

evidence that it would have threatened, 

proposed, taken, or not taken the same 

personnel action in the absence of the 

disclosure or other protected activity. 

■ 19. Section 1209.9 is amended by 

revising paragraph (a)(6)(ii) to read as 

follows: 

§ 1209.9 Content of stay request and 

response. 

(a) * * * 

(6) * * * 

(ii) The action complained of was 

based on whistleblowing or other 

protected activity as defined in 

§ 1209.4(b) of this part; and 

* * * * * 

■ 20. Section 1209.13 is revised to read 

as follows: 

§ 1209.13 Referral of findings to the 

Special Counsel. 

When the Board determines in a 

proceeding under this part that there is 

reason to believe that a current Federal 

employee may have committed a 

prohibited personnel practice described 

at 5 U.S.C. 2302(b)(8) or (b)(9)(A)(i), (B), 

(C), or (D), the Board will refer the 

matter to the Special Counsel to 

investigate and take appropriate action 

under 5 U.S.C. 1215. 

William D. Spencer, 

Clerk of the Board. 

[FR Doc. 2013–15633 Filed 7–1–13; 8:45 am] 

BILLING CODE 7400–01–P 

DEPARTMENT OF AGRICULTURE 

Food and Nutrition Service 

7 CFR Part 253 

[FNS–2009–0006] 

RIN 0584–AD95 

Food Distribution Program on Indian 

Reservations: Amendments Related to 

the Food, Conservation, and Energy 

Act of 2008; Approval of Information 

Collection Request 

AGENCY: Food and Nutrition Service, 

USDA. 

ACTION: Final rule; Notice of Approval of 

Information Collection Request (ICR). 

SUMMARY: The final rule entitled Food 

Distribution Program on Indian 

Reservations: Amendments Related to 

the Food, Conservation, and Energy Act 

of 2008 was published on April 6, 2011. 

The Office of Management and Budget 

(OMB) cleared the associated 

information collection requirements 

(ICR) on December 20, 2011. This 

document announces approval of the 

ICR. 

DATES: The ICR associated with the final 

rule published in the Federal Register 

on April 6, 2011, at 76 FR 18861, was 

approved by OMB on December 20, 

2011, under OMB Control Number 

0584–0293. 

FOR FURTHER INFORMATION CONTACT: 

Dana Rasmussen, Chief, Policy Branch, 

Food Distribution Division, Food and 

Nutrition Service, USDA, 3101 Park 

Center Drive, Room 506, Alexandria, 

Virginia 22302, by phone at (703) 305– 

2662, or via email at 

Dana.Rasmussen@fns.usda.gov. 

Dated: June 25, 2013. 

Jeffrey J. Tribiano, 

Acting Administrator, Food and Nutrition 

Service. 

[FR Doc. 2013–15634 Filed 7–1–13; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 925 

[Doc. No. AMS–FV–13–0005; FV13–925–1 

FR] 

Grapes Grown in Designated Area of 

Southeastern California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

California Desert Grape Administrative 

Committee (Committee) for the 2013 

and subsequent fiscal periods from 

$0.0150 to $0.0165 per 18-pound lug of 

grapes handled. The Committee locally 

administers the marketing order that 

regulates the handling of grapes grown 

in a designated area of southeastern 

California. Assessments upon grape 

handlers are used by the Committee to 

fund reasonable and necessary expenses 

of the program. The fiscal period begins 

January 1 and ends December 31. The 

assessment rate will remain in effect 

indefinitely unless modified, suspended 

or terminated. 

DATES: Effective July 3, 2013. 


emcdonald on DSK67QTVN1PROD with RULES
Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations 39549 

FOR FURTHER INFORMATION CONTACT: 

Kathie M. Notoro, Marketing Specialist, 

or Martin Engeler, Regional Director, 

California Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906, or Email: 

Kathie.Notoro@ams.usda.gov or 

Martin.Engeler@ams.usda.gov. Small 

businesses may request information on 

complying with this regulation by 

contacting Jeffrey Smutny, Marketing 

Order and Agreement Division, Fruit 

and Vegetable Program, AMS, USDA, 

1400 Independence Avenue SW., STOP 

0237, Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

925, as amended (7 CFR part 925), 

regulating the handling of grapes grown 

in a designated area of southeastern 

California, hereinafter referred to as the 

‘‘order.’’ The order is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, grape handlers in a designated 

area of southeastern California are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as issued herein is 

applicable to all assessable grapes 

beginning on January 1, 2013, and will 

continue until amended, suspended, or 

terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule increases the assessment 

rate established for the Committee for 

the 2013 and subsequent fiscal periods 

from $0.0150 to $0.0165 per 18-pound 

lug of grapes handled. 

The grape order provides authority for 

the Committee, with the approval of 

USDA, to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members of the Committee are 

producers and handlers of grapes grown 

in a designated area of southeastern 

California. They are familiar with the 

Committee’s needs and with the costs 

for goods and services in their local area 

and are thus in a position to formulate 

an appropriate budget and assessment 

rate. The assessment rate is formulated 

and discussed in a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

For the 2012 and subsequent fiscal 

periods, the Committee recommended, 

and the USDA approved, an assessment 

rate that would continue in effect from 

fiscal period to fiscal period unless 

modified, suspended, or terminated by 

USDA based upon a recommendation 

and information submitted by the 

Committee or other information 

available to USDA. 

The Committee met on March 4, 2013, 

and unanimously recommended 2013 

expenditures of $100,000 and an 

assessment rate of $0.0165 per 18-pound 

lug of grapes handled. In comparison, 

last year’s budgeted expenditures were 

$95,500. The recommended assessment 

rate is $0.0015 higher than the $0.0150 

rate currently in effect. The Committee 

also estimated shipments for the 2013 

season to be 5,800,000 lugs. The higher 

assessment rate, applied to estimated 

shipments of 5,800,000 lugs, is expected 

to generate $95,700 in revenue, which is 

slightly less than the budgeted 

expenses. However, combining this 

revenue with $4,300 from financial 

operating reserves will provide 

sufficient revenue to cover the 

Committee’s budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2013 fiscal period include $15,500 for 

research, $17,000 for general office 

expenses, and $67,500 for management 

and compliance expenses. In 

comparison, major expenditures for the 

2012 fiscal period included $15,500 for 

research, $17,500 for general office 

expenses, and $62,500 for management 

and compliance expenses. 

The assessment rate recommended by 

the Committee was derived by 

evaluating several factors, including 

estimated shipments for the 2013 

season, budgeted expenses, and the 

level of available financial reserves. The 

Committee determined that it could 

utilize $4,300 from its financial reserves 

and still maintain the reserves at an 

acceptable level. The remaining $95,700 

necessary to meet budgeted expenses 

will need to be raised through 

assessments. Thus, dividing the $95,700 

in necessary assessment revenue by 

2013 estimated shipments of 5,800,000 

lugs results in an assessment rate of 

$0.0165. 

Reserve funds by the end of 2013 are 

projected at $53,972, which is well 

within the amount authorized under the 

order. Section 925.41 of the order 

permits the Committee to maintain 

approximately one fiscal period’s 

expenses in reserve. 

The assessment rate will continue in 

effect indefinitely unless modified, 

suspended, or terminated by USDA 

based upon a recommendation and 

information submitted by the 

Committee or other available 

information. 

Although this assessment rate will be 

in effect for an indefinite period, the 

Committee will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate the Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s 2013 budget and those for 

subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 


emcdonald on DSK67QTVN1PROD with RULES
39550 Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations 

small entities acting on their own 

behalf. 

There are approximately 14 handlers 

of southeastern California grapes who 

are subject to regulation under the order 

and about 41 grape producers in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (13 CFR 

121.201) as those having annual receipts 

of less than $7,000,000, and small 

agricultural producers are defined as 

those whose annual receipts are less 

than $750,000. Nine of the 14 handlers 

subject to regulation have annual grape 

sales of less than $7,000,000, according 

to Committee and USDA data. In 

addition, it is estimated that ten of the 

41 producers have annual receipts of 

less than $750,000. Based on the 

foregoing, it may be concluded that a 

majority of grape handlers regulated 

under the order, and about ten of the 

producers could be classified as small 

entities under the Small Business 

Administration definitions. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2013 and 

subsequent fiscal periods. The 

Committee unanimously recommended 

an assessment rate of $0.0165 per 18- 

pound lug of grapes handled, and 2013 

expenditures of $100,000. The 

assessment rate of $0.0165 is $0.0015 

higher than the 2012 rate currently in 

effect. The quantity of assessable grapes 

for the 2013 season is estimated at 

5,800,000 18-pound lugs. Thus, the 

$0.0165 rate should generate $95,700 in 

income. Combined with $4,300 from 

financial reserves, this should provide 

adequate revenue to meet the 2013 fiscal 

period expenses. In addition, reserve 

funds at the end of the year are 

projected to be $53,972, which is well 

within the order’s limitation of 

approximately one fiscal period’s 

expenses. 

The major expenditures 

recommended by the Committee for the 

2013 fiscal period include $15,500 for 

research, $17,000 for general office 

expenses, and $67,500 for management 

and compliance expenses. In 

comparison, major expenditures for the 

2012 fiscal period included $15,500 for 

research, $17,500 for general office 

expenses, and $62,500 for management 

and compliance expenses. 

Prior to arriving at this budget, the 

Committee considered alternative 

expenditures and assessment rates, 

including not increasing the $0.0150 

assessment rate currently in effect. 

Based on a crop estimate of 5,800,000 

18-pound lugs, the Committee 

ultimately determined that revenue 

generated from an assessment rate of 

$0.0165, combined with funds from the 

financial reserve, should adequately 

cover increased expenses while 

providing an adequate 2013 ending 

financial reserve. 

A review of historical crop and price 

information, as well as preliminary 

information pertaining to the 2013 

season indicates that the producer price 

for southeastern California grapes for 

the 2013 season could average about 

$8.00 per 18-pound lug. Utilizing this 

estimate and the assessment rate of 

$0.0165, estimated assessment revenue 

as a percentage of total estimated 

producer revenue should be 0.20 

percent for the 2013 season ($0.0165 

divided by $8.00 per 18-pound lug). 

Thus, the assessment revenue should be 

well below 1 percent of estimated 

producer revenue in 2013. 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs 

should be offset by the benefits derived 

by the operation of the order. In 

addition, the Committee’s meeting was 

widely publicized throughout the grape 

production area and all interested 

persons were invited to attend and 

participate in Committee deliberations 

on all issues. Like all Committee 

meetings, the March 4, 2013, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express views on this issue. 

In accordance with the Paperwork 

Reduction Act of 1995, (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0189. No 

changes in those requirements as a 

result of this action are necessary. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large California grape 

handlers. As with all Federal marketing 

order programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this action. 

A proposed rule concerning this 

action was published in the Federal 

Register on May 14, 2013 (78 FR 28147). 

Copies of the proposed rule were also 

mailed or sent via facsimile to all grape 

handlers. Finally, the proposal was 

made available through the internet by 

USDA and the Office of the Federal 

Register. A 15-day comment period 

ending May 29, 2013, was provided for 

interested persons to respond to the 

proposal. No comments were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously-mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Committee and other 

available information provided, it is 

hereby found that this rule, as 

hereinafter set forth, will tend to 

effectuate the declared policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) The 2013 fiscal period 

began on January 1, 2013, and the 

marketing order requires that the 

assessment rate for each fiscal period 

apply to all assessable grapes handled 

during such fiscal period; (2) the 

Committee needs to have sufficient 

funds to pay its expenses, which are 

incurred on a continuous basis; and (3) 

handlers are aware of this action, which 

was unanimously recommended by the 

Committee at a public meeting and is 

similar to other assessment rate actions 

issued in past years. Also, a 15-day 

comment period was provided for in the 

proposed rule. 

List of Subjects in 7 CFR Part 925 

Grapes, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 925 is amended as 

follows: 

PART 925—GRAPES GROWN IN A 

DESIGNATED AREA OF 

SOUTHEASTERN CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 925 continues to read as follows: 


emcdonald on DSK67QTVN1PROD with RULES
Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations 39551 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 925.215 is revised to read 

as follows: 

§ 925.215 Assessment rate. 

On and after January 1, 2013, an 

assessment rate of $0.0165 per 18-pound 

lug is established for grapes grown in a 

designated area of southeastern 

California. 

Dated: June 25, 2013. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2013–15621 Filed 7–1–13; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1205 

[Doc. AMS–CN–12–0065] 

Cotton Board Rules and Regulations: 

Adjusting Supplemental Assessment 

on Imports (2013 Amendment) 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Direct Final Rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is amending the Cotton 

Board Rules and Regulations, decreasing 

the value assigned to imported cotton 

for the purposes of calculating 

supplemental assessments collected for 

use by the Cotton Research and 

Promotion Program. This amendment is 

required each year to assure that 

assessments collected on imported 

cotton and the cotton content of 

imported products will be the same as 

those paid on domestically produced 

cotton. In addition, AMS is changing 

two Harmonized Tariff Schedule (HTS) 

statistical reporting numbers that were 

amended since the last assessment 

adjustment in 2012. 

DATES: This direct final rule is effective 

September 3, 2013, without further 

action or notice, unless significant 

adverse comment is received by August 

1, 2013. If significant adverse comment 

is received, AMS will publish a timely 

withdrawal of the amendment in the 

Federal Register. 

ADDRESSES: Written comments may be 

submitted to the addresses specified 

below. All comments will be made 

available to the public. Please do not 

include 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: 

A. Background 

Amendments to the Cotton Research 

and Promotion Act (7 U.S.C. 2101–2118) 

(Act) were enacted by Congress under 

Subtitle G of Title XIX of the Food, 

Agriculture, Conservation, and Trade 

Act of 1990 (Pub. L. 101–624, 104 stat. 

3909, November 28, 1990). These 

amendments contained two provisions 

that authorize changes in the funding 

procedures for the Cotton Research and 

Promotion Program. These provisions 

provide for: (1) the assessment of 

imported cotton and cotton products; 

and (2) termination of refunds to cotton 

producers. (Prior the 1990 amendments 

to the Act, producers could request 

assessment refunds.) 

As amended, the Cotton Research and 

Promotion Order (7 CFR part 1205) 

(Order) was approved by producers and 

importers voting in a referendum held 

July 17–26, 1991, and the amended 

Order was published in the Federal 

Register on December 10, 1991, (56 FR 

64470). A proposed rule implementing 

the amended Order was published in 

the Federal Register on December 17, 

1991, (56 FR 65450). Implementing 

rules were published on July 1 and 2, 

1992, (57 FR 29181) and (57 FR 29431), 

respectively. 

This direct final rule would amend 

the value assigned to imported cotton in 

the Cotton Board Rules and Regulations 

(7 CFR part 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 fivetenths 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, this 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 × 0.453597). 

$1 per bale assessment equals 

$0.002000 per pound or $0.2000 cents 


emcdonald on DSK67QTVN1PROD with RULES