Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 61025 

invalid, the validity of the remainder of 

this subpart, or the applicability thereof 

to other persons or circumstances shall 

not be affected thereby. 

§ 1217.87 Amendments. 

Amendments to this subpart may be 

proposed from time to time by the Board 

or any interested person affected by the 

provisions of the Act, including the 

Secretary. 

§ 1217.88 OMB control numbers. 

The control numbers assigned to the 

information collection requirements by 

the Office of Management and Budget 

pursuant to the Paperwork Reduction 

Act of 1995, 44 U.S.C. chapter 35, are 

OMB control number 0505–0001 (Board 

nominee background statement) and 

OMB control number 0581–NEW. 

Subpart B—[Reserved] 

Dated: September 22, 2010. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–24202 Filed 9–30–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1217 

[Document Number AMS–FV–10–0015; 

PR–B] 

RIN 0581–AD03 

Softwood Lumber Research, 

Promotion, Consumer Education and 

Industry Information Order; 

Referendum Procedures 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on procedures for conducting 

a referendum to determine whether 

issuance of a proposed Softwood 

Lumber Research, Promotion, Consumer 

Education and Industry Information 

Order (Order) is favored by domestic 

manufacturers and importers of 

softwood lumber. Softwood lumber is 

used in products like flooring, siding 

and framing. The procedures would also 

be used for any subsequent referendum 

under the Order. The proposed Order is 

being published separately in this issue 

of the Federal Register. This proposed 

rule also announces the Agricultural 

Marketing Service’s (AMS) intent to 

request approval by the Office of 

Management and Budget (OMB) of new 

information collection requirements to 

implement the program. 

DATES: Comments must be received by 

November 30, 2010. Pursuant to the 

Paperwork Reduction Act (PRA), 

comments on the information collection 

burden that would result from this 

proposal must be received by November 

30, 2010. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments may be 

submitted on the Internet at: http:// 

www.regulations.gov or to the Research 

and Promotion Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., Room 

0632–S, Stop 0244, Washington, DC 

20250–0244; facsimile: (202) 205–2800. 

All comments should reference the 

docket number and the date and page 

number of this issue of the Federal 

Register and will be made available for 

public inspection, including name and 

address, if provided, in the above office 

during regular business hours or it can 

be viewed at http:// 

www.regulations.gov. 

Pursuant to the PRA, comments 

regarding the accuracy of the burden 

estimate, ways to minimize the burden, 

including the use of automated 

collection techniques or other forms of 

information technology, or any other 

aspect of this collection of information, 

should be sent to the above address. In 

addition, comments concerning the 

information collection should also be 

sent to the Desk Office for Agriculture, 

Office of Information and Regulatory 

Affairs, OMB, New Executive Office 

Building, 725 17th Street, NW., Room 

725, Washington, DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Maureen T. Pello, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, USDA, 

P.O. Box 831, Beavercreek, Oregon 

97004; telephone: (503) 632–8848; 

facsimile (503) 632–8852; or electronic 

mail: Maureen.Pello@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued pursuant to the Commodity 

Promotion, Research, and Information 

Act of 1996 (1996 Act) (7 U.S.C. 7411– 

7425). 

Executive Order 12866 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and therefore has not been 

reviewed by the OMB. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. Section 524 of the 

1996 Act provides that it shall not affect 

or preempt any other Federal or state 

law authorizing promotion or research 

relating to an agricultural commodity. 

Under section 519 of the 1996 Act, a 

person subject to an order may file a 

written petition with the U.S. 

Department of Agriculture (USDA) 

stating that an order, any provision of an 

order, or any obligation imposed in 

connection with an order, is not 

established in accordance with the law, 

and request a modification of an order 

or an exemption from an order. Any 

petition filed challenging an order, any 

provision of an order, or any obligation 

imposed in connection with an order, 

shall be filed within two years after the 

effective date of an order, provision, or 

obligation subject to challenge in the 

petition. The petitioner will have the 

opportunity for a hearing on the 

petition. Thereafter, USDA will issue a 

ruling on the petition. The 1996 Act 

provides that the district court of the 

United States for any district in which 

the petitioner resides or conducts 

business shall have the jurisdiction to 

review a final ruling on the petition, if 

the petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of USDA’s final ruling. 

This rule invites comments on 

procedures for conducting a referendum 

to determine whether domestic 

manufacturers and importers of 

softwood lumber favor issuance of a 

proposed softwood lumber Order. 

Softwood lumber is used in products 

like flooring, siding and framing. USDA 

would conduct the referendum. The 

program would be implemented if it is 

favored by a majority of domestic 

manufacturers and importers of 

softwood lumber voting in the 

referendum who also represent a 

majority of the volume of softwood 

lumber represented in the referendum. 

The procedures would also be used for 

any subsequent referendum under the 

Order. The proposed Order is being 

published separately in this issue of the 

Federal Register. This rule also 

announces AMS’s intent to request 

approval by the OMB of new 

information collection requirements to 

implement the program. 

The 1996 Act authorizes USDA to 

establish agricultural commodity 

research and promotion orders which 

may include a combination of 

promotion, research, industry 

information, and consumer information 

activities funded by mandatory 

assessments. These programs are 

designed to maintain and expand 

markets and uses for agricultural 

commodities. As defined under section 

513(1)(D) of the 1996 Act, agricultural 


jlentini on DSKJ8SOYB1PROD with PROPOSALS2
61026 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 

1The HTS numbers referred to in this discussion 

are as of January 1, 2008. 

commodities include the products of 

forestry, which includes softwood 

lumber. 

The 1996 Act provides for alternatives 

within the terms of a variety of 

provisions. Paragraph (e) of Section 518 

of the 1996 Act provides three options 

for determining industry approval of a 

new research and promotion program: 

(1) By a majority of those persons 

voting; (2) by persons voting for 

approval who represent a majority of the 

volume of the agricultural commodity; 

or (3) by a majority of those persons 

voting for approval who also represent 

a majority of the volume of the 

agricultural commodity. In addition, 

Section 518 of the 1996 Act provides for 

referenda to ascertain approval of an 

order to be conducted either prior to its 

going into effect or within three years 

after assessments first begin under an 

order. 

USDA received a proposal for a 

national research and promotion 

program for softwood lumber from the 

Blue Ribbon Commission (BRC). The 

BRC is a committee of 21 chief 

executive officers and heads of 

businesses that domestically 

manufacture and import softwood 

lumber. Softwood lumber is used in 

products like flooring, siding and 

framing. The program would be 

financed by an assessment on softwood 

lumber domestic manufacturers and 

importers and would be administered 

by a board of industry members selected 

by the Secretary of Agriculture 

(Secretary). The initial assessment rate 

would be $0.35 per thousand board feet 

shipped within or imported to the 

United States and could be increased up 

to $0.50 per thousand board feet. 

Entities that domestically ship or import 

less than 15 million board feet would be 

exempt along with shipments exported 

outside of the United States. No entity 

would pay assessments on the first 15 

million board feet domestically shipped 

or imported. The purpose of the 

program would be to strengthen the 

position of softwood lumber in the 

marketplace, maintain and expand 

markets for softwood lumber, and 

develop new uses for softwood lumber 

within the United States. 

The BRC proposed that a referendum 

be held among eligible domestic 

manufacturers and importers to 

determine whether they favor 

implementation of the program prior to 

it going into effect. The BRC 

recommended that the program be 

implemented if it is favored by a 

majority of the domestic manufacturers 

and importers voting in the referendum 

who also represent a majority of the 

volume of softwood lumber represented 

in the referendum. Domestic 

manufacturers and importers who 

domestically ship or import 15 million 

board feet or more of softwood lumber 

annually would be eligible to vote in the 

referendum. 

The softwood lumber and softwood 

lumber products covered under the 

Order would be the same as those 

described in section 804(a) within Title 

VIII (Softwood Lumber Act of 2008 or 

SLA of 2008) of the Tariff Act of 1930 

(19 U.S.C. 1202–1683g), as amended by 

section 3301 of the Food, Conservation 

and Energy Act of 2008 (Pub. L. 110– 

246, enacted June 18, 2008). An interim 

final rule issued by Customs and 

effective on September 18, 2008 (73 FR 

49934; August 25, 2008), prescribed an 

importer declaration program and entry 

requirements applicable to such 

softwood lumber and softwood lumber 

products. The declaration program and 

entry requirements were required under 

section 803 of the SLA of 2008. Section 

804 of the SLA of 2008 sets forth the 

scope of softwood lumber and softwood 

lumber products covered by that Act. 

Accordingly, all softwood lumber and 

softwood lumber products classified 

under subheading 4407.10.00, 

4409.10.10, 4409.10.20, or 4409.10.90 of 

the Harmonized Tariff Schedule of the 

United States (HTSUS) are subject to the 

importer declaration program and entry 

requirements and would be covered 

under this Order and are described in 

the following paragraphs: 1

(1) Coniferous wood, sawn or chipped 

lengthwise, sliced or peeled, whether or 

not planed, sanded or finger-jointed, of 

a thickness exceeding 6 millimeters; 

(2) Coniferous wood siding (including 

strips and friezes for parquet flooring, 

not assembled) continuously shaped 

(tongued, grooved, rabbeted, chamfered, 

v-jointed, beaded, molded, rounded, or 

the like) along any of its edges or faces, 

whether or not planed, sanded, or 

finger-jointed; 

(3) Other coniferous wood (including 

strips and friezes for parquet flooring, 

not assembled) continuously shaped 

(tongued, grooved, rabbeted, chamfered, 

v-jointed, beaded, molded, rounded, or 

the like) along any of its edges or faces 

(other than wood moldings and wood 

dowel rods) whether or not planed, 

sanded, or finger-jointed; 

(4) Coniferous wood flooring 

(including strips and friezes for parquet 

flooring, not assembled) continuously 

shaped (tongued, grooved, rabbeted, 

chamfered, v-jointed, beaded, molded, 

rounded, or the like) along any of its 

edges or faces, whether or not planed, 

sanded, or finger jointed; and 

(5) Coniferous drilled and notched 

lumber and angle cut lumber. 

In addition, any product classified 

under subheading 4409.10.05 of the 

HTSUS that is continually shaped along 

its end and or side edges, and unless 

excepted or excluded from the importer 

declaration requirement, softwood 

lumber products that are stringers, 

radius cut box-spring frame 

components, fence pickets, truss 

components, pallet components, and 

door and window frame parts classified 

under subheading 4418.90.46.95, 

4421.90.70.40, or 4421.90.97.40 of the 

HTSUS are covered under the SLA of 

2008 and would be covered under the 

Order. 

The following are not subject to the 

importer declaration program under 

section 803 of the SLA of 2008 (see 

section 804(b)) because they are defined 

as excluded from the program and 

would thus not be covered under the 

Order: 

(1) Trusses and truss kits, properly 

classified under subheading 4418.90 of 

the HTSUS; 

(2) I–Joist beams; 

(3) Assembled box-spring frames; 

(4) Pallets and pallet kits, properly 

classified under subheading 4415.20 of 

the HTSUS; 

(5) Garage doors; 

(6) Edge-glued wood, properly 

classified under subheading 

4421.90.97.40 of the HTSUS; 

(7) Complete door frames; 

(8) Complete window frames; 

(9) Furniture; 

(10) Articles brought into the United 

States temporarily and for which an 

exemption from duty is claimed under 

subchapter XIII of chapter 98 of the 

HTSUS; and 

(11) Household and personal effects. 

Also, the following products are not 

subject to the importer declaration 

program established under section 803 

of the SLA of 2008 (see section 804(c)) 

because they are defined as excepted 

from the program: 

(1) Stringers (pallet components used 

for runners), if the stringers have at least 

two notches on the side, positioned at 

equal distance from the center, to 

properly accommodate forklift blades, 

and properly classified under 

subheading 4421.90.97.40 of the 

HTSUS; 

(2) Box-spring frame kits, if the kits 

contain two wooden side rails, two 

wooden end (or top) rails; and varying 

numbers of wooden slats; and the side 

rails and the end rails are radius-cut at 

both ends. Box spring frame kits must 

be individually packaged, and contain 


jlentini on DSKJ8SOYB1PROD with PROPOSALS2
Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 61027 

2Spelter, H., D. McKeever, D. Toth, Profile 2009: 

Softwood Sawmills in the United States, USDA, p. 

15. 

3Percentages were obtained from the American 

Lumber Standard Committee, Inc. (ALSC). The 

ALSC administers an accreditation program for the 

grademarking of lumber produced under the 

American Softwood Lumber Standard (Voluntary 

Product Standard 20). 

4Western Wood Products Association, 2008 

Statistical Yearbook, p. 32. 

5U.S. Census Bureau, 2009, Construction, http:// 

www.census.gov/mcd/. 

6http://www.fas.usda.gov/gats; Accessed 5/1/10. 

the exact number of wooden 

components needed to make the boxspring frame described on the entry 

documents, with no further processing 

required. None of the components 

contained in the package may exceed 1 

inch in actual thickness or 83 inches in 

length. 

(3) Radius-cut box-spring-frame 

components, not exceeding 1 inch in 

actual thickness or 83 inches in length, 

ready for assembly without further 

processing, if radius cuts are present on 

both ends of the boards and are 

substantial cuts so as to completely 

round one corner. 

(4) Fence pickets requiring no further 

processing and properly classified 

under subheading 4421.90.70 of the 

HTSUS, 1 inch or less in actual 

thickness, up to 8 inches wide, and 6 

feet or less in length, and having finials 

or decorative cuttings that clearly 

identify them as fence pickets (in the 

case of dog-eared fence pickets, the 

corners of the boards should be cut off 

so as to remove pieces of wood in the 

shape of isosceles right angle triangles 

with sides measuring 3⁄4 of an inch or 

more). 

(5) Softwood lumber originating in the 

United States that is exported to another 

country for minor processing and 

imported into the United States if the 

processing occurring in another country 

is limited to kiln drying, planing to 

create smooth-to-size board, and 

sanding; and the importer establishes to 

Customs’ satisfaction upon entry that 

the softwood lumber originated in the 

United States. 

(6) Any softwood lumber or softwood 

lumber product that originated in the 

United States, if the importer, exporter, 

foreign manufacturer or original 

domestic manufacturer establishes to 

Customs’ satisfaction upon entry that 

the softwood lumber entered and 

documented as originating in the United 

States was first manufactured in the 

United States. 

(7) Softwood lumber or softwood 

lumber products contained in a single 

family home package or kit, regardless 

of classification under the HTSUS, if the 

importer declares that the following 

requirements have been met: (i) The 

package or kit constitutes a full package 

of the number of wooden pieces 

specified in the plan, design or 

blueprint necessary to produce a home 

of at least 700 square feet produced to 

a specified plan, design or blueprint; (ii) 

The package or kit contains all 

necessary internal and external doors 

and windows, nails, screws, glue, 

subfloor, sheathing, beams, posts, and 

connectors, and if included in the 

purchase contract, the decking, trim, 

drywall and roof shingles specified in 

the plan, design or blueprint; (iii) Prior 

to importation, the package or kit is sold 

to a United States retailer that sells 

complete home packages or kits 

pursuant to a valid purchase contract 

referencing the particular home design 

plan or blueprint, and the contract is 

signed by a customer not affiliated with 

the importer; and (iv) Softwood lumber 

products entered as part of the package 

or kit, whether in a single entry or 

multiple entries on multiple days, and 

are to be used solely for the construction 

of the single family home specified by 

the home design plan, or blueprint 

matching the Customs import entry. 

For each entry of softwood lumber 

products contained in a single family 

home package for which the importer 

declares that these four requirements are 

met, the importer must retain and make 

available to Customs upon request the 

following documentation: 

(1) A copy of the appropriate home 

design plan, or blueprint matching the 

Customs entry in the United States; 

(2) A purchase contract from a retailer 

of home kits or packages signed by a 

customer not affiliated with the 

importer; 

(3) A listing of all parts in the package 

or kit being entered into the United 

States that conforms to the home design 

package being imported; and 

(4) If a single contract involves 

multiple entries, an identification of all 

of the items required to be listed under 

item (3) that are included in each 

individual shipment. 

Accordingly, this rule would add 

subpart B to part 1217 that would 

establish procedures for conducting the 

referendum. The procedures would 

cover definitions, voting instructions, 

use of subagents, ballots, the 

referendum report, and confidentiality 

of information. The procedures would 

be applicable for the initial referendum 

and future referenda. 

Initial Regulatory Flexibility Act 

Analysis 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS is required to examine the 

impact of the proposed rule on small 

entities. Accordingly, AMS has 

considered the economic impact of this 

action on small entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. The Small 

Business Administration defines, in 13 

CFR part 121, small agricultural 

producers as those having annual 

receipts of no more than $750,000 and 

small agricultural service firms 

(domestic manufacturers and importers) 

as those having annual receipts of no 

more than $7.0 million. 

According to USDA’s Forest Service, 

it is estimated that, between 2007 and 

2009, there were an average of 595 

domestic manufacturers of softwood 

lumber in the United States annually.2

Using an average price of $280 per 

thousand board feet, a domestic 

manufacturer who ships less than 25 

million board feet per year would be 

considered a small entity. It is estimated 

that, between 2007 and 2009, about 498 

domestic manufacturers, or about 61 

percent, shipped less than 25 million 

board feet annually.3

According to U.S. Customs and 

Border Protection data, it is estimated 

that, between 2007 and 2009, there were 

about 833 importers of softwood lumber 

annually. About 798 importers, or about 

90 percent, imported less than $7.0 

million worth of softwood lumber 

annually. Thus, the majority of domestic 

manufacturers and importers of 

softwood lumber would be considered 

small entities. 

It is estimated that, for 2007–2008, 

total output (production) of softwood 

lumber by U.S. sawmills averaged about 

29.5 billion board feet annually. Of the 

29.5 billion board feet, 12.6 billion 

board feet were from the southern states, 

14.4 billion board feet were from the 

western states, and 2.5 billion board feet 

were from the northeast and lake states. 

(Data for the western states is from the 

Western Wood Products Association 4

and data for the other two regions is 

from the U.S. Census Bureau 5.) 

According to U.S. Department of 

Commerce, Census Bureau, Foreign 

Trade Statistics data,6 imports of 

softwood lumber from 2007 through 

2009 averaged about 13 billion board 

feet annually. During those years, 

imports from Canada averaged 12 

billion board feet annually, comprising 

about 92 percent of total imports; 

imports from western Europe averaged 

434 million board feet annually, 

comprising about 3 percent of total 

imports; and imports from Chile 

averaged 255 million board feet 


jlentini on DSKJ8SOYB1PROD with PROPOSALS2
61028 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 

annually, comprising about 2 percent of 

total imports. Imports from other 

countries accounted for the remaining 3 

percent of total imports for 2007 

through 2009. 

This rule invites comments on 

procedures for conducting a referendum 

to determine whether domestic 

manufacturers and importers of 

softwood lumber favor issuance of a 

proposed softwood lumber Order. 

Softwood lumber is used in products 

like flooring, siding and framing. USDA 

would conduct the referendum. The 

program would be implemented if it is 

favored by a majority of domestic 

manufacturers and importers of 

softwood lumber voting in a referendum 

who also represent a majority of 

softwood lumber represented in the 

referendum. The procedures would also 

be used for any subsequent referendum 

under the Order. The procedures are 

authorized under paragraph (e) of 

Section 518 the 1996 Act. 

Regarding the economic impact of this 

rule on affected entities, eligible 

softwood lumber domestic 

manufacturers and importers would 

have the opportunity to participate in 

the referendum. The Order would 

exempt domestic manufacturers and 

importers who ship or import less than 

15 million board feet annually from the 

payment of assessments. Exempt 

domestic manufacturers and importers 

would not be eligible to participate in 

the referendum. Of the 595 domestic 

manufacturers and 883 importers, it is 

estimated that about 363 domestic 

manufacturers and 103 importers would 

pay assessments under the Order and 

thus be eligible to vote in the 

referendum. It is estimated that if $17.5 

million were collected in assessments 

($0.35 per thousand board feet 

assessment rate with 50 billion board 

feet assessed), 25 percent, or about $4 

million, would be paid by importers and 

75 percent, or about $13 million, would 

be paid by domestic manufacturers. 

Voting in the referendum is optional. If 

domestic manufacturers and importers 

chose to vote, the burden of voting 

would be offset by the benefits of having 

the opportunity to vote on whether or 

not they want to be covered by the 

program. 

Regarding alternatives, USDA 

considered requiring eligible voters to 

vote in person at various USDA offices 

across the country. USDA also 

considered electronic voting, but the use 

of computers is not universal. 

Conducting the referendum from one 

central location by mail ballot would be 

more cost effective and reliable. USDA 

would provide easy access to 

information for potential voters through 

a toll free telephone line. 

This action would impose an 

additional reporting burden on eligible 

domestic manufacturers and importers 

of softwood lumber. Eligible domestic 

manufacturers and importers would 

have the opportunity to complete and 

submit a ballot to USDA indicating 

whether or not they favor 

implementation of the proposed Order. 

The specific burden for the ballot is 

detailed later in this document in the 

section titled Paperwork Reduction Act. 

As with all Federal promotion 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. Finally, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. 

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. 

Regarding outreach efforts, USDA 

would keep these individuals informed 

throughout the program implementation 

and referendum process to ensure that 

they are aware of and are able to 

participate in the program 

implementation process. USDA would 

also publicize information regarding the 

referendum process so that trade 

associations and related industry media 

can be kept informed. 

USDA has performed this initial RFA 

analysis regarding the impact of this 

proposed rule on small businesses. 

Paperwork Reduction Act 

In accordance with the Paperwork 

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

Chapter 35), the referendum ballot, 

which represents the information 

collection and recordkeeping 

requirements that may be imposed by 

this rule, has been submitted to OMB for 

approval. 

Title: Softwood Lumber Research, 

Promotion, Consumer Education and 

Industry Information Order. 

OMB Number: 0581–NEW. 

Expiration Date of Approval: 3 years 

from OMB date of approval. 

Type of Request: New information 

collection for research and promotion 

programs. 

Abstract: The information collection 

requirements in the request are essential 

to carry out the intent of the 1996 Act. 

The information collection concerns a 

proposal received by USDA for a 

national research and promotion 

program for softwood lumber. The 

program would be financed by an 

assessment on softwood lumber 

domestic manufacturers and importers 

and would be administered by a board 

of industry members selected by the 

Secretary. The program would provide 

for an exemption for the first 15 million 

board feet of lumber shipped by 

domestic manufacturers within the 

United States or imported into the 

United States during the year. Exports of 

softwood lumber from the United States 

would also be exempt from assessments. 

A referendum would be held among 

eligible domestic manufacturers and 

importers to determine whether they 

favor implementation of the program 

prior to it going into effect. The purpose 

of the program would be to help build 

the market for softwood lumber. 

The information collection 

requirements in this rule concern the 

referendum that would be held to 

determine whether the program is 

favored by the industry. Domestic 

manufacturers and importers of 15 

million or more board feet annually 

would be eligible to vote in the 

referendum. The ballot would be 

completed by eligible domestic 

manufacturers and importers who want 

to indicate whether or not they support 

implementation of the program. 

Referendum Ballot 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.25 hour per application. 

Respondents: Domestic manufacturers 

and importers. 

Estimated Number of Respondents: 

464 (363 domestic manufacturers and 

103 importers). 

Estimated Number of Responses per 

Respondent: 1 every 5 years (0.2). 

Estimated Total Annual Burden on 

Respondents: 23.20 hours. 

The ballot would be added to the 

other information collections approved 

under OMB No. 0581–NEW. 

An estimated 464 respondents would 

provide information to the Board (363 

domestic manufacturers and 103 

importers). The estimated cost of 

providing the information to the Board 

by respondents would be $765.60. This 

total has been estimated by multiplying 

23.20 total hours required for reporting 

and recordkeeping by $33, the average 

mean hourly earnings of various 

occupations involved in keeping this 

information. Data for computation of 

this hourly rate was obtained from the 

U.S. Department of Labor Statistics. 

The proposed Order’s provisions have 

been carefully reviewed, and every 

effort has been made to minimize any 


jlentini on DSKJ8SOYB1PROD with PROPOSALS2
Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 61029 

unnecessary recordkeeping costs or 

requirements, including efforts to utilize 

information already submitted under 

other programs administered by USDA 

and other state programs. 

Request for Public Comment Under the 

Paperwork Reduction Act 

Comments are invited on: (a) Whether 

the proposed collection of information 

is necessary for the proper performance 

of functions of the proposed Order and 

USDA’s oversight of the proposed 

Order, including whether the 

information would have practical 

utility; (b) the accuracy of USDA’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; (c) the accuracy of 

USDA’s estimate of the principal 

manufacturing areas in the United 

States for softwood lumber; (d) the 

accuracy of USDA’s estimate of the 

number of domestic manufacturers and 

importers of softwood lumber that 

would be covered under the program; 

(e) ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and (f) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

Comments concerning the 

information collection requirements 

contained in this action should 

reference OMB No. 0581–NEW. In 

addition, the docket number, date, and 

page number of this issue of the Federal 

Register also should be referenced. 

Comments should be sent to the same 

addresses referenced in the ADDRESSES

section of this rule. 

A 60-day comment period is provided 

to allow interested persons to comment 

on this proposed information collection. 

All written comments received will be 

summarized and included in the request 

for OMB approval. All comments will 

also become a matter of public record. 

List of Subjects in 7 CFR Part 1217 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Softwood Lumber, Promotion, Reporting 

and recordkeeping requirements. 

For the reasons set forth in the 

preamble, it is proposed that Title 7, 

Chapter XI of the Code of Federal 

Regulations, as proposed to be amended 

elsewhere in this issue of the Federal 

Register, be further amended as follows: 

PART 1217—SOFTWOOD LUMBER 

RESEARCH, PROMOTION, 

CONSUMER EDUCATION AND 

INDUSTRY INFORMATION ORDER 

1. The authority citation for part 1217 

continues to read as follows: 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

2. Subpart B of 7 CFR part 1217 is 

added to read as follows: 

Subpart B—Referendum Procedures 

Sec. 

1217.100 General. 

1217.101 Definitions. 

1217.102 Voting. 

1217.103 Instructions. 

1217.104 Subagents. 

1217.105 Ballots. 

1217.106 Referendum report. 

1217.107 Confidential information. 

1217.108 OMB Control number. 

Subpart B—Referendum Procedures 

§ 1217.100 General. 

Referenda to determine whether 

eligible domestic manufacturers and 

importers favor the issuance, 

continuance, amendment, suspension, 

or termination of the Softwood Lumber 

Research, Promotion, Consumer 

Education, and Industry Information 

Order shall be conducted in accordance 

with this subpart. 

§ 1217.101 Definitions. 

For the purposes of this subpart: 

(a) Administrator means the 

Administrator of the Agricultural 

Marketing Service, with power to 

delegate, or any officer or employee of 

the U.S. Department of Agriculture to 

whom authority has been delegated or 

may hereafter be delegated to act in the 

Administrator’s stead. 

(b) Customs means the U.S. Customs 

and Border Protection or U.S. Customs 

Service, an agency of the U.S. 

Department of Homeland Security. 

(c) Department or USDA means the 

U.S. Department of Agriculture or any 

officer or employee of the Department to 

whom authority has heretofore been 

delegated, or to whom authority may 

hereafter be delegated, to act in the 

Secretary’s stead. 

(d) Eligible domestic manufacturer 

means any person who manufactured 

and shipped 15 million board feet or 

more of softwood lumber in the United 

States during the representative period. 

(e) Eligible importer means any person 

who imported 15 million board feet or 

more of softwood lumber into the 

United States during the representative 

period as a principal or as an agent, 

broker, or consignee of any person who 

manufactured softwood lumber outside 

of the United States for sale in the 

United States, and who is listed as the 

importer of record for such softwood 

lumber. Importation occurs when 

softwood lumber manufactured outside 

of the United States is released from 

custody by Customs and introduced into 

the stream of commerce in the United 

States. Included are persons who hold 

title to foreign-manufactured softwood 

lumber immediately upon release by 

Customs, as well as any persons who act 

on behalf of others, as agents or brokers, 

to secure the release of softwood lumber 

from Customs when such softwood 

lumber is entered or withdrawn for use 

in the United States. 

(f) Manufacture means the process of 

transforming softwood logs into 

softwood lumber. 

(g) Order means the Softwood Lumber 

Research, Promotion, Consumer 

Education and Industry Information 

Order. 

(h) Person means any individual, 

group of individuals, partnership, 

corporation, association, cooperative, or 

any other legal entity. For the purpose 

of this definition, the term ‘‘partnership’’ 

includes, but is not limited to: 

(1) A husband and a wife who have 

title to, or leasehold interest in, a 

softwood lumber manufacturing entity 

as tenants in common, joint tenants, 

tenants by the entirety, or, under 

community property laws, as 

community property; and 

(2) So called ‘‘joint ventures’’ wherein 

one or more parties to an agreement, 

informal or otherwise, contributed land, 

facilities, capital, labor, management, 

equipment, or other services, or any 

variation of such contributions by two 

or more parties, so that it results in the 

domestic manufacturing or importation 

of softwood lumber and the authority to 

transfer title to the softwood lumber so 

manufactured or imported. 

(i) Referendum agent or agent means 

the individual or individuals designated 

by the Secretary to conduct the 

referendum. 

(j) Representative period means the 

period designated by the Department. 

(k) Softwood lumber means all 

softwood lumber and softwood lumber 

products described in section 804(a) of 

Title VIII of the Tariff Act of 1930, as 

amended (19 U.S.C. 1202–1683g). This 

definition does not include those 

products excluded or excepted under 

sections 804(b) and (c) of that Act. 

(l) Softwood means one of the 

botanical groups of trees that have 

needle-like or scale-like leaves, the 

conifers. 

(m) United States means collectively 

the 50 states, the District of Columbia, 


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61030 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 

the Commonwealth of Puerto Rico, and 

the territories and possessions of the 

United States. 

§ 1217.102 Voting. 

(a) Each eligible domestic 

manufacturer and importer of softwood 

lumber shall be entitled to cast only one 

ballot in the referendum. However, each 

domestic manufacturer in a landlord/ 

tenant relationship or a divided 

ownership arrangement involving 

totally independent entities cooperating 

only to manufacture softwood lumber, 

in which more than one of the parties 

is a domestic manufacturer or importer, 

shall be entitled to cast one ballot in the 

referendum covering only such 

domestic manufacturer or importer’s 

share of ownership. 

(b) Proxy voting is not authorized, but 

an officer or employee of an eligible 

corporate domestic manufacturer or 

importer, or an administrator, executor, 

or trustee of an eligible entity may cast 

a ballot on behalf of such entity. Any 

individual so voting in a referendum 

shall certify that such individual is an 

officer or employee of the eligible entity, 

or an administrator, executive, or trustee 

of an eligible entity and that such 

individual has the authority to take such 

action. Upon request of the referendum 

agent, the individual shall submit 

adequate evidence of such authority. 

(c) A single entity who domestically 

manufactures and imports softwood 

lumber may cast one vote in the 

referendum. 

(d) All ballots are to be cast by mail 

or other means, as instructed by the 

Department. 

§ 1217.103 Instructions. 

The referendum agent shall conduct 

the referendum, in the manner provided 

in this subpart, under the supervision of 

the Administrator. The Administrator 

may prescribe additional instructions, 

consistent with the provisions of this 

subpart, to govern the procedure to be 

followed by the referendum agent. Such 

agent shall: 

(a) Determine the period during 

which ballots may be cast; 

(b) Provide ballots and related 

material to be used in the referendum. 

The ballot shall provide for recording 

essential information, including that 

needed for ascertaining whether the 

person voting, or on whose behalf the 

vote is cast, is an eligible voter; 

(c) Give reasonable public notice of 

the referendum: 

(1) By using available media or public 

information sources, without incurring 

advertising expense, to publicize the 

dates, places, method of voting, 

eligibility requirements, and other 

pertinent information. Such sources of 

publicity may include, but are not 

limited to, print and radio; and 

(2) By such other means as the agent 

may deem advisable. 

(d) Mail to eligible domestic 

manufacturers and importers whose 

names and addresses are known to the 

referendum agent, the instructions on 

voting, a ballot, and a summary of the 

terms and conditions of the proposed 

Order. No person who claims to be 

eligible to vote shall be refused a ballot; 

(e) At the end of the voting period, 

collect, open, number, and review the 

ballots and tabulate the results in the 

presence of an agent of a third party 

authorized to monitor the referendum 

process; 

(f) Prepare a report on the referendum; 

and 

(g) Announce the results to the public. 

§ 1217.104 Subagents. 

The referendum agent may appoint 

any individual or individuals necessary 

or desirable to assist the agent in 

performing such agent’s functions of 

this subpart. Each individual so 

appointed may be authorized by the 

agent to perform any or all of the 

functions which, in the absence of such 

appointment, shall be performed by the 

agent. 

§ 1217.105 Ballots. 

The referendum agent and subagents 

shall accept all ballots cast. However, if 

an agent or subagent deems that a ballot 

should be challenged for any reason, the 

agent or subagent shall endorse above 

their signature, on the ballot, a 

statement to the effect that such ballot 

was challenged, by whom challenged, 

the reasons therefore, the results of any 

investigations made with respect 

thereto, and the disposition thereof. 

Ballots invalid under this subpart shall 

not be counted. 

§ 1217.106 Referendum report. 

Except as otherwise directed, the 

referendum agent shall prepare and 

submit to the Administrator a report on 

the results of the referendum, the 

manner in which it was conducted, the 

extent and kind of public notice given, 

and other information pertinent to the 

analysis of the referendum and its 

results. 

§ 1217.107 Confidential information. 

The ballots and other information or 

reports that reveal, or tend to reveal, the 

vote of any person covered under the 

Order and the voter list shall be strictly 

confidential and shall not be disclosed. 

§ 1217.108 OMB control number. 

The control number assigned to the 

information collection requirement in 

this subpart by the Office of 

Management and Budget pursuant to the 

Paperwork Reduction Act of 1995, 44 

U.S.C. is OMB control number 0581– 

NEW. 

Dated: September 22, 2010. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–24192 Filed 9–30–10; 8:45 am] 

BILLING CODE 3410–02–P 


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