[Federal Register Volume 61, Number 113 (Tuesday, June 11, 1996)]
[Rules and Regulations]
[Pages 29461-29462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14758]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1240

[AMS-FV-96-701.FR]


Honey Research, Promotion, and Consumer Information Order--
Amendment of the Rules and Regulations To Add HTS Code for Flavored 
Honey

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule adds a new Harmonized Tariff Schedule (HTS) code 
number for imported flavored honey to the rules and regulations issued 
under the Honey Research, Promotion, and Consumer Information Order to 
provide authority for the U.S. Customs Service to collect an assessment 
on all imported, flavored honey.

EFFECTIVE DATE: July 12, 1996.

FOR FURTHER INFORMATION CONTACT: Richard B. Schultz, Research and 
Promotion Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 
96456, Room 2535-So., Washington, D.C. 20090-6456; telephone (202) 720-
9915.

SUPPLEMENTARY INFORMATION: This rule is issued under the Honey 
Research, Promotion, and Consumer Information Act, as amended [104 
Stat. 3904, 7 U.S.C. 4601 et seq.], hereinafter referred to as the Act.
    This rule has been issued in conformance with Executive Order 
12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. It is not intended to have retroactive effect. This 
rule will 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 10 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, any provision of such order, or any obligation 
imposed in connection with such order is not in accordance with law; 
and requesting a modification of the order or an exemption from the 
order. 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 such person is an inhabitant, or has a principal 
place of business, has jurisdiction to review the Secretary's ruling on 
the petition, provided that a complaint is filed within 20 days after 
the date of entry of the ruling.
    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires the 
Agency to examine the impact of a rule on small entities. Pursuant to 5 
U.S.C. 605(b), the Agricultural Marketing Service (AMS) has certified 
that the issuance of this final rule will not have a significant 
economic effect on a substantial number of small entities.
    The board estimates that 500,000 pounds of flavored honey are 
imported annually at a market value of approximately $325,000 and will 
result in an estimated $5,000 in assessments. This action will not 
result in a major price increase or have significant adverse effects on 
production or marketing.
    There are an estimated 145 handlers, 510 producer-packers, 8,300 
producers, and 350 importers who are currently subject to the 
provisions of the Order. The majority of these persons may be 
classified as small agricultural producers and small agricultural 
service firms. Small agricultural producers are defined by the Small 
Business Administration [13 CFR 121.601] as those having annual 
receipts of less than $500,000, and small service firms are defined as 
those having annual receipts of less than $5 million.
    In accordance with the Paperwork Reduction Act [44 U.S.C. Chapter 
35], and OMB regulations [5 CFR Part 1320], the information collection 
and recordkeeping requirements contained in this action have been 
previously approved under OMB control number 0581-0093.

Background

    The Honey Research, Promotion, and Consumer Information Order 
(Order) provides that each producer and importer shall pay to the Board 
a one cent per pound assessment rate on honey and honey products 
produced in or imported into the United States. Section 1240.5 of the 
Order defines honey products as products wherein honey is a principal 
ingredient.
    In order for the U.S. Customs Service (Customs) to collect the 
assessments on imported honey and honey products, each product needs to 
be identified by an HTS Code. Since the Board inception, honey has been 
assessed by Customs under HTS code number 0409.00.00. However, there 
were no HTS codes for honey products.
    The Board has identified flavored honey as a product containing 
approximately 99 percent honey. The Board estimates that 500,000 pounds 
of flavored honey are imported into the United States annually without 
the importer paying the required assessment. Therefore, at the 
recommendation of the Board, the Department requested the Committee for 
Statistical Annotation of Tariff Schedules (Committee) on the 
International Trade Commission to establish an HTS code for flavored 
honey. The Committee notified the Department on February 13, 1996, that 
a code has been established for flavored honey. The purpose of this 
rule is to add the new HTS code for flavored honey to the rules and 
regulations under the

[[Page 29462]]

Order to provide authority for Customs to collect the assessment on all 
imported, flavored honey.
    A proposed rule was published in the Federal Register on March 27, 
1996, [60 FR 13463]. No comments were received on the proposal.
    This rule adds the new 2106.90.9988 HTS code for flavored honey to 
section 1240.115(e) of the rules and regulations issued under the 
Order. Flavored honey would be assessed at the one-cent-per-pound rate. 
A conversion factor is not necessary because the amount of honey in 
flavored honey is estimated at 99 percent of the total product. Customs 
will notify importers 60 to 90 days before it begins collecting the 
assessment on flavored honey.
    Pursuant to the provisions in 5 U.S.C. 553, it is found and 
determined that good cause exists for not postponing the effective date 
of this action until 30 days after publication in the Federal Register 
because: (1) This action puts into effect an HTS Code for flavored 
honey for the U.S. Customs Service to use in assessing imported 
flavored honey; (2) flavored honey is currently being imported; (3) a 
30-day comment period was provided and no comments were received; and 
(4) no useful purpose would be served by a delay of the effective date.
    After consideration of all relevant material presented, it is found 
that this regulation, as hereinafter set forth, will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 1240

    Advertising, Agricultural research, Honey, Imports, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR Part 1240 is 
amended as follows:

PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION 
ORDER

    1. The authority citation for 7 CFR Part 1240 continues to read as 
follows:

    Authority: 7 U.S.C. 4601-4612.

    2. In Sec. 1240.115, paragraph (e) is revised to read as follows:


Sec. 1240.115  Levy of assessments.

* * * * *
    (e) The U.S. Customs Service (USCS) will collect assessments on all 
honey or honey products where honey is the principal ingredient 
imported under its tariff schedule (HTS heading numbers 0409.00.00 and 
21006.90.9988) at the time of entry or withdrawal for consumption and 
forward such assessment as per the agreement between the USCS and USDA. 
Any importer or agent who is exempt from payment of assessments 
pursuant to Sec. 1240.42 (a) and (b) of the Order may apply to the 
Board for reimbursement of such assessment paid.
* * * * *
    Dated: June 3, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-14758 Filed 6-10-96; 8:45 am]
BILLING CODE 3410-02-P