[Federal Register Volume 60, Number 86 (Thursday, May 4, 1995)]
[Proposed Rules]
[Pages 21999-22010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10950]



========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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


Federal Register / Vol. 60, No. 86 / Thursday, May 4, 1995 / Proposed 
Rules

[[Page 21999]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[CN-95-002]


1995 Proposed Amendment to Cotton Board Rules and Regulations 
Adjusting Supplemental Assessment on Imports

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service proposes to amend the 
Cotton Board Rules and Regulations by raising the value assigned to 
imported cotton for the purpose of calculating supplemental assessments 
collected for use by the Cotton Research and Promotion Program. The 
proposed value reflects the 12-month average price received by U.S. 
farmers for Upland cotton for calendar year 1994.

DATES: Comments must be received by June 5, 1995.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to Craig Shackelford, Chief, Research and 
Promotion Staff, Cotton Division, AMS, USDA, P.O. Box 96456, Room 2641-
S, Washington, D.C. 20090-6456, or by facsimile (202) 690-1718. Three 
copies of all written materials shall be submitted, and they will be 
made available for public inspection in the office of the Cotton 
Division, Washington, D.C. during regular business hours. All comments 
should reference docket number, date, and page number of this issue of 
the Federal Register.

FOR FURTHER INFORMATION CONTACT: Craig Shackelford, (202) 720-2259.

SUPPLEMENTARY INFORMATION: This rule has been determined to be ``not 
significant'' for purposes of Executive Order 12866, and therefore has 
not been reviewed by the Office of Management and Budget.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. It is not intended to have retroactive effect. This 
rule would not preempt any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Section 12 of the Act, any 
person subject to an order may file with the Secretary a petition 
stating that the order, any provision of the plan, or any obligation 
imposed in connection with the order is not in accordance with law and 
requesting a modification of the order or to be exempted therefrom. 
Such person is afforded the opportunity for a hearing on the petition. 
After the hearing, the Secretary would rule on the petition. The Act 
provides that the District Court of the United States in any district 
in which the person is an inhabitant, or has his principal place of 
business, has jurisdiction to review the Secretary's ruling, provided a 
complaint is filed within 20 days from the date of the entry of the 
ruling.
    The Administrator, Agricultural Marketing Service (AMS) has 
considered the economic impact of this action on small entities 
pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
    There are an estimated 10,000 importers who are presently subject 
to rules and regulations issued pursuant to the Cotton Research and 
Promotion Order. This rule would affect importers of cotton and cotton-
containing products. The majority of these importers are small 
businesses under the criteria established by the Small Business 
Administration. This rule would raise the assessments paid by the 
importers under the Cotton Research and Promotion Order. Even though 
the assessment would be raised, the increase is small and would not 
significantly affect small businesses. The AMS Administrator therefore 
has certified that this rule will not have a significant economic 
impact on a substantial number of small entities.
    In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR Part 1320) which implement the Paperwork Reduction 
Act (PRA) of 1980 (44 U.S.C. 3501 et seq.) the information collection 
requirements contained in the regulation to be amended have been 
previously approved by OMB and were assigned control number 0581-0093.
    The Cotton Research and Promotion Act Amendments of 1990 enacted by 
Congress under Subtitle G of Title XIX of the Food, Agriculture, 
Conservation and Trade Act of 1990 on November 28, 1990, contained two 
provisions that authorized changes in the funding procedures for the 
Cotton Research and Promotion Program. These provisions are: (1) The 
assessment of imported cotton and cotton products; and (2) termination 
of the right of cotton producers to demand a refund of assessments.
    An amended Cotton Research and Promotion Order was approved by 
producers and importers voting in a referendum held July 17-26, 1991. 
Proposed rules implementing the amended Order were published in the 
Federal Register on December 17, 1991, (56 FR 65450). The final 
implementing rules were published on July 1 and 2, 1992, (57 FR 29181) 
and (57 FR 29431), respectively.
    This proposed rule would increase the value assigned to imported 
cotton in the Cotton Board Rules and Regulations 7 CFR 1205.510 (b)(2). 
This value is used to calculate supplemental assessments on imported 
cotton and the cotton content of imported products. Supplemental 
assessments are the second part of a two-part assessment. The first 
part of the assessment is levied on the weight of cotton produced or 
imported at a rate of $1 per bale of cotton which is equivalent to 500 
pounds or $1 per 226.8 kilograms.
    Supplemental assessments are levied at a rate of five tenths of one 
percent of the value of domestically produced cotton, imported cotton, 
and the cotton content of imported products. The agency adopted the use 
of the calendar year average price received by U.S. farmers for Upland 
cotton as a benchmark for the value of domestically produced cotton. 
The source for this statistic is ``Agricultural Prices'', a publication 
of the National Agricultural Statistics Service (NASS) of the 
Department of Agriculture. Use of the average price figure in the 
calculation of supplemental assessments on imported cotton and the 
cotton content of imported products yields an assessment 
[[Page 22000]] that approximates assessments paid on domestically 
produced cotton.
    The current value of imported cotton as published in the Federal 
Register (59 FR 59110) for the purpose of calculating supplemental 
assessments on imported cotton is $1.197 per kilogram. Using the 
Average Price Received by U.S. farmers for Upland cotton for the 
calendar year 1994, which is $0.683 per pound, the new value of 
imported cotton would be $1.5057 per kilogram.
    An example of the assessment formula and how the various figures 
are obtained is as follows:

One bale is equal to 500 pounds.
One kilogram equals 2.2046 pounds.
One pound equals 0.453597 kilograms.

    One dollar per bale assessment converted to kilograms

A 500 pound bale equals 226.8 kg. (500  x  .453597)
$1 per bale assessment equals Sec. 0.002000 per pound (1 <divide> 500) 
or $0.004409 per kg. (1 <divide> 226.8).
    Supplemental assessment of 5/10 of one percent of the value of the 
cotton converted to kilograms

Average price received $0.683 per pound or $1.5057 per kg. (0.683  x  
2.2046) = 1.5057.

5/10 of one percent of the average price in kg. equals $0.007529 per 
kg. (1.5057  x  .005)

    The total assessment per kilogram of raw cotton is obtained by 
adding the $1 per bale equivalent assessment of $0.004409 per kg. and 
the supplemental assessment Sec. 0.007529 per kg. which equals 
$0.011938 per kg.
    Since the value of cotton is the basis of the supplemental 
assessment calculation and the figures shown in the right hand column 
of the Import Assessment Table 1205.510(b)(3) are a result of such a 
calculation, these figures have been revised. These figures indicate 
the total assessment per kilogram due for each Harmonized Tariff 
Schedule (HTS) number subject to assessment.
    As a result of implementation of national trade agreements, several 
changes in the harmonized tariff schedule numbering have occurred. 
Modifications to the harmonized tariff schedule were published in the 
January 4, 1995, Federal Register at 60 FR 1007 (Proclamation 6763 of 
December 23, 1994, by the President of the United States of America). 
Therefore, revisions to the Import Assessment Table used in the Cotton 
Research and Promotion program were necessary. These changes are as 
follows:
    Deleted numbers:
5201001000
5201002000
5702422090
5702491010
5702494090
6002920000
6116926020
6116926030
6116926040
6116929000
6116939010
6208920010
6208920030
6211320080
6211420050
6211420080
6211430090
6216001220
6216003910
6216003920
6303920000

    New numbers:
5201000000
5201000500
5201001200
5201001400
5201001800
5201002200
5201002400
5201002800
5201003400
5201003800
5701104000
5701109000
5801210000
5804291000
5808107000
6002921000
6110909022
6110909024
6110909030
6110909040
6110909042
6115199010
6117809010
6117809040
6201999060
6203399060
6203498045
6201198090
6207199010
6210109010
6210403000
6210405020
6211118010
6211118020
6212105020
6212109010
6212109020
6217109010
6217109030
6302215010
6302215020
6302217010
6302219010
6302217020
6302219020
6302217050
6302219050
6302313010
6302313050
6302315050
6302317010
6302319010
6302317020
6302319020
6302317040
6302319040
6302317050
6302319050

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR Part 1205 is 
proposed to be amended as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

    1. The authority citation for Part 1205 continues to read as 
follows:

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

    2. In Section 1205.510(b) (2) and (3) are revised to read as 
follows:


Sec. 1205.510  Levy of assessments.

* * * * *
    (b) * * *
    (2) The 12-month average of monthly average prices received by U.S. 
farmers will be calculated annually. Such average will be used as the 
value of imported cotton for the purpose of levying the supplemental 
assessment on imported cotton and will be expressed in kilograms. The 
value of imported cotton for the purpose of levying this supplemental 
assessment is $1.5057 per kilogram.
    (3) The following table contains Harmonized Tariff Schedule (HTS) 
classification numbers and corresponding conversion factors and 
assessments. The left column of the following table indicates the HTS 
classifications of imported cotton and cotton-containing products 
subject to assessment. The center column indicates the conversion 
factor for determining the raw fiber content for each kilogram of the 
HTS. HTS numbers for raw cotton have no conversion factor in the table. 
The right column indicates the total assessment per kilogram of the 
article assessed.
    (i) Any line item entry of cotton appearing on Customs entry 
documentation in which the value of the cotton contained therein is 
less than $220.99 will not be subject to assessments as described in 
this section.

[[Page 22001]]

    (ii) In the event that any HTS number subject to assessment is 
changed and such change is merely a replacement of a previous number 
and has no impact on the physical properties, description, or cotton 
content of the product involved, assessments will continue to be 
collected based on the new number.

                         Import Assessment Table                        
                           [Raw Cotton Fiber]                           
------------------------------------------------------------------------
                                               Conversion               
             HTS classification                  factor       Cents/kg. 
------------------------------------------------------------------------
5201000000..................................        0.0000        1.1938
5201000500..................................        0.0000        1.1938
5201001200..................................        0.0000        1.1938
5201001400..................................        0.0000        1.1938
5201001800..................................        0.0000        1.1938
5201002200..................................        0.0000        1.1938
5201002400..................................        0.0000        1.1938
5201002800..................................        0.0000        1.1938
5201003400..................................        0.0000        1.1938
5201003800..................................        0.0000        1.1938
5204110000..................................        1.1111        1.3264
5204200000..................................        1.1111        1.3264
5205111000..................................        1.1111        1.3264
5205112000..................................        1.1111        1.3264
5205121000..................................        1.1111        1.3264
5205122000..................................        1.1111        1.3264
5205131000..................................        1.1111        1.3264
5205132000..................................        1.1111        1.3264
5205141000..................................        1.1111        1.3264
5205210000..................................        1.1111        1.3264
5205220000..................................        1.1111        1.3264
5205230000..................................        1.1111        1.3264
5205240000..................................        1.1111        1.3264
5205250000..................................        1.1111        1.3264
5205310000..................................        1.1111        1.3264
5205320000..................................        1.1111        1.3264
5205330000..................................        1.1111        1.3264
5205340000..................................        1.1111        1.3264
5205410000..................................        1.1111        1.3264
5205420000..................................        1.1111        1.3264
5205440000..................................        1.1111        1.3264
5205450000..................................        1.1111        1.3264
5206120000..................................        0.5556        0.6633
5206130000..................................        0.5556        0.6633
5206140000..................................        0.5556        0.6633
5206220000..................................        0.5556        0.6633
5206230000..................................        0.5556        0.6633
5206240000..................................        0.5556        0.6633
5206310000..................................        0.5556        0.6633
5207100000..................................        1.1111        1.3264
5207900000..................................        0.5556        0.6633
5208112020..................................        1.1455        1.3675
5208112040..................................        1.1455        1.3675
5208112090..................................        1.1455        1.3675
5208114020..................................        1.1455        1.3675
5208114060..................................        1.1455        1.3675
5208114090..................................        1.1455        1.3675
5208118090..................................        1.1455        1.3675
5208124020..................................        1.1455        1.3675
5208124040..................................        1.1455        1.3675
5208124090..................................        1.1455        1.3675
5208126020..................................        1.1455        1.3675
5208126040..................................        1.1455        1.3675
5208126060..................................        1.1455        1.3675
5208126090..................................        1.1455        1.3675
5208128020..................................        1.1455        1.3675
5208128090..................................        1.1455        1.3675
5208130000..................................        1.1455        1.3675
5208192020..................................        1.1455        1.3675
5208192090..................................        1.1455        1.3675
5208194020..................................        1.1455        1.3675
5208194090..................................        1.1455        1.3675
5208196020..................................        1.1455        1.3675
5208196090..................................        1.1455        1.3675
5208224040..................................        1.1455        1.3675 
[[Page 22002]]
                                                                        
5208224090..................................        1.1455        1.3675
5208226020..................................        1.1455        1.3675
5208226060..................................        1.1455        1.3675
5208228020..................................        1.1455        1.3675
5208230000..................................        1.1455        1.3675
5208292020..................................        1.1455        1.3675
5208292090..................................        1.1455        1.3675
5208294090..................................        1.1455        1.3675
5208296090..................................        1.1455        1.3675
5208298020..................................        1.1455        1.3675
5208312000..................................        1.1455        1.3675
5208321000..................................        1.1455        1.3675
5208323020..................................        1.1455        1.3675
5208323040..................................        1.1455        1.3675
5208323090..................................        1.1455        1.3675
5208324020..................................        1.1455        1.3675
5208324040..................................        1.1455        1.3675
5208325020..................................        1.1455        1.3675
5208330000..................................        1.1455        1.3675
5208392020..................................        1.1455        1.3675
5208392090..................................        1.1455        1.3675
5208394090..................................        1.1455        1.3675
5208396090..................................        1.1455        1.3675
5208398020..................................        1.1455        1.3675
5208412000..................................        1.1455        1.3675
5208416000..................................        1.1455        1.3675
5208418000..................................        1.1455        1.3675
5208421000..................................        1.1455        1.3675
5208423000..................................        1.1455        1.3675
5208424000..................................        1.1455        1.3675
5208425000..................................        1.1455        1.3675
5208430000..................................        1.1455        1.3675
5208492000..................................        1.1455        1.3675
5208494020..................................        1.1455        1.3675
5208494090..................................        1.1455        1.3675
5208496010..................................        1.1455        1.3675
5208496090..................................        1.1455        1.3675
5208498090..................................        1.1455        1.3675
5208512000..................................        1.1455        1.3675
5208516060..................................        1.1455        1.3675
5208518090..................................        1.1455        1.3675
5208523020..................................        1.1455        1.3675
5208523040..................................        1.1455        1.3675
5208523090..................................        1.1455        1.3675
5208524020..................................        1.1455        1.3675
5208524040..................................        1.1455        1.3675
5208524060..................................        1.1455        1.3675
5208525020..................................        1.1455        1.3675
5208530000..................................        1.1455        1.3675
5208592020..................................        1.1455        1.3675
5208592090..................................        1.1455        1.3675
5208594090..................................        1.1455        1.3675
5208596090..................................        1.1455        1.3675
5209110020..................................        1.1455        1.3675
5209110030..................................        1.1455        1.3675
5209110090..................................        1.1455        1.3675
5209120020..................................        1.1455        1.3675
5209120040..................................        1.1455        1.3675
5209190020..................................        1.1455        1.3675
5209190040..................................        1.1455        1.3675
5209190060..................................        1.1455        1.3675
5209190090..................................        1.1455        1.3675
5209210090..................................        1.1455        1.3675
5209220020..................................        1.1455        1.3675
5209220040..................................        1.1455        1.3675
5209290040..................................        1.1455        1.3675
5209290090..................................        1.1455        1.3675
5209313000..................................        1.1455        1.3675
5209316020..................................        1.1455        1.3675
5209316030..................................        1.1455        1.3675
[[Page 22003]]
                                                                        
5209316050..................................        1.1455        1.3675
5209316090..................................        1.1455        1.3675
5209320020..................................        1.1455        1.3675
5209320040..................................        1.1455        1.3675
5209390020..................................        1.1455        1.3675
5209390040..................................        1.1455        1.3675
5209390060..................................        1.1455        1.3675
5209390080..................................        1.1455        1.3675
5209390090..................................        1.1455        1.3675
5209413000..................................        1.1455        1.3675
5209416020..................................        1.1455        1.3675
5209416040..................................        1.1455        1.3675
5209420020..................................        1.0309        1.2307
5209420040..................................        1.0309        1.2307
5209430020..................................        1.1455        1.3675
5209430040..................................        1.1455        1.3675
5209490020..................................        1.1455        1.3675
5209490090..................................        1.1455        1.3675
5209516030..................................        1.1455        1.3675
5209516050..................................        1.1455        1.3675
5209520020..................................        1.1455        1.3675
5209590020..................................        1.1455        1.3675
5209590040..................................        1.1455        1.3675
5209590090..................................        1.1455        1.3675
5210114020..................................        0.6873        0.8205
5210114040..................................        0.6873        0.8205
5210116020..................................        0.6873        0.8205
5210116040..................................        0.6873        0.8205
5210116060..................................        0.6873        0.8205
5210118020..................................        0.6873        0.8205
5210120000..................................        0.6873        0.8205
5210192090..................................        0.6873        0.8205
5210214040..................................        0.6873        0.8205
5210216020..................................        0.6873        0.8205
5210216060..................................        0.6873        0.8205
5210218020..................................        0.6873        0.8205
5210314020..................................        0.6873        0.8205
5210314040..................................        0.6873        0.8205
5210316020..................................        0.6873        0.8205
5210318020..................................        0.6873        0.8205
5210414000..................................        0.6873        0.8205
5210416000..................................        0.6873        0.8205
5210418000..................................        0.6873        0.8205
5210498090..................................        0.6873        0.8205
5210514040..................................        0.6873        0.8205
5210516020..................................        0.6873        0.8205
5210516040..................................        0.6873        0.8205
5210516060..................................        0.6873        0.8205
5211110090..................................        0.6873        0.8205
5211120020..................................        0.6873        0.8205
5211190020..................................        0.6873        0.8205
5211190060..................................        0.6873        0.8205
5211210030..................................        0.4165        0.4972
5211210050..................................        0.6873        0.8205
5211290090..................................        0.6873        0.8205
5211320020..................................        0.6873        0.8205
5211390040..................................        0.6873        0.8205
5211390060..................................        0.6873        0.8205
5211490020..................................        0.6873        0.8205
5211490090..................................        0.6873        0.8205
5211590020..................................        0.6873        0.8205
5212146090..................................        0.9164        1.094 
5212156020..................................        0.9164        1.094 
5212216090..................................        0.9164        1.094 
5309214010..................................        0.2864        0.3419
5309214090..................................        0.2864        0.3419
5309294010..................................        0.2864        0.3419
5311004000..................................        0.9164        1.094 
5407810010..................................        0.5727        0.6837
5407810030..................................        0.5727        0.6837
5407912020..................................        0.4009        0.4786
[[Page 22004]]
                                                                        
5408312020..................................        0.4009        0.4786
5408329020..................................        0.4009        0.4786
5408349020..................................        0.4009        0.4786
5408349090..................................        0.4009        0.4786
5509530030..................................        0.5556        0.6633
5509530060..................................        0.5556        0.6633
5513110020..................................        0.4009        0.4786
5513110040..................................        0.4009        0.4786
5513110060..................................        0.4009        0.4786
5513110090..................................        0.4009        0.4786
5513120000..................................        0.4009        0.4786
5513130020..................................        0.4009        0.4786
5513210020..................................        0.4009        0.4786
5513310000..................................        0.4009        0.4786
5514120020..................................        0.4009        0.4786
5516420060..................................        0.4009        0.4786
5516910060..................................        0.4009        0.4786
5516930090..................................        0.4009        0.4786
5601210010..................................        1.1455        1.3675
5601210090..................................        1.1455        1.3675
5601300000..................................        1.1455        1.3675
5602109090..................................        0.5727        0.6837
5602290000..................................        1.1455        1.3675
5602906000..................................        0.526         0.6279
5604900000..................................        0.5556        0.6633
5607902000..................................        0.8889        1.0612
5608901000..................................        1.1111        1.3264
5608902300..................................        1.1111        1.3264
5609001000..................................        1.1111        1.3264
5609004000..................................        0.5556        0.6633
5701104000..................................        0.0556        0.0664
5701109000..................................        0.1111        0.1326
5701901010..................................        1.0444        1.2468
5702109020..................................        1.1           1.3132
5702312000..................................        0.0778        0.0929
5702411000..................................        0.0722        0.0862
5702412000..................................        0.0778        0.0929
5702421000..................................        0.0778        0.0929
5702913000..................................        0.0889        0.1061
5702991010..................................        1.1111        1.3264
5702991090..................................        1.1111        1.3264
5703900000..................................        0.4489        0.5359
5801210000..................................        1.1455        1.3675
5801230000..................................        1.1455        1.3675
5801250010..................................        1.1455        1.3675
5801250020..................................        1.1455        1.3675
5801260020..................................        1.1455        1.3675
5802190000..................................        1.1455        1.3675
5802300030..................................        0.5727        0.6837
5804291000..................................        1.1455        1.3675
5806200000..................................        0.3534        0.4219
5806310000..................................        1.1455        1.3675
5806400000..................................        0.4296        0.5129
5808107000..................................        0.5727        0.6837
5808900010..................................        0.5727        0.6837
5811002000..................................        1.1455        1.3675
6001106000..................................        1.1455        1.3675
6001210000..................................        0.8591        1.0256
6001220000..................................        0.2864        0.3419
6001910010..................................        0.8591        1.0256
6001910020..................................        0.8591        1.0256
6001920020..................................        0.2864        0.3419
6001920030..................................        0.2864        0.3419
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[[Page 22005]]
                                                                        
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[[Page 22007]]
                                                                        
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[[Page 22008]]
                                                                        
6204322010..................................        1.2366        1.4763
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[[Page 22009]]
                                                                        
6207220000..................................        0.3695        0.4411
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6302219020..................................        0.8182        0.9768
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6302910005..................................        1.052         1.2559
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6302910035..................................        1.052         1.2559
6302910045..................................        1.052         1.2559
6302910050..................................        1.052         1.2559
6302910060..................................        1.052         1.2559
6303110000..................................        0.9448        1.1279
6303910000..................................        0.6429        0.7675
6304111000..................................        1.0629        1.2689
6304190500..................................        1.052         1.2559
6304191000..................................        1.1689        1.3954
6304191500..................................        0.4091        0.4884
6304192000..................................        0.4091        0.4884
6304910020..................................        0.9351        1.1163
6304920000..................................        0.9351        1.1163
6505901540..................................        1.181         1.4099
6505902060..................................        0.9935        1.186 
6505902545..................................        0.5844        0.6977
------------------------------------------------------------------------

* * * * *
    Dated: April 27, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-10950 Filed 5-3-95; 8:45 am]
BILLING CODE 3410-02-P