Source: https://ecfr.io/Title-07/pt7.10.1427
Timestamp: 2019-09-20 01:07:38
Document Index: 95092642

Matched Legal Cases: ['art 1427', 'art 1427', 'art 1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', '§1427', 'art 780', '§1427', '§1427', 'art 1425']

[7 CFR 1427] Title 7 Part 1427 : Code of Federal Regulations ';
Title 7 Part 1427
Title 7 → Subtitle B → Chapter XIV → Subchapter B → Part 1427
§1427.1082 Basic standards.
§1427.1084 Examination of warehouses.
§1427.1085 Exceptions.
§1427.1086 Approval of warehouse, requests for reconsideration.
§1427.1087 Exemption from requirements.
§1427.1089 [Reserved]
§1427.1201 [Reserved]
§1427.1203 Eligible ELS cotton.
§1427.1204 Eligible domestic users and exporters.
§1427.1206 [Reserved]
§1427.1207 Payment rate.
Authority: 7 U.S.C. 7231-7237, 7931-7936, 9011, and 9031-40, 15 U.S.C. 714b and c.
Authority: Secs. 4 and 5, 62 Stat. 1070, as amended, 1072, as amended (15 U.S.C. 714 b and c).
Source: 44 FR 67085, Nov. 23, 1979, unless otherwise noted.
(a) Unless otherwise provided in this subpart, each warehouseman and each of the warehouses owned or operated by such warehouseman for which CCC approval is sought for the storage or handling of CCC-owned or -loan commodities must meet the following standards:
(1) The warehouseman must:
(i) Be an individual, partnership, corporation, association, or other legal entity engaged in the business of storing or handling for hire, or both, the applicable commodity. The warehouseman, if a corporation, must be authorized by its charter to engage in such business,
(ii) Have a current and valid license for the kind of storage operation for which the warehouseman seeks approval if such a license is required by State or local laws or regulations,
(iii) Have a net worth which is the greater of $25,000 or the amount which results from multiplying the maximum storage capacity of the warehouse (the total number of bales of cotton or cotton linters which the warehouse can accommodate when stored in the customary manner) times ten (10) dollars per bale. The net worth need not exceed $250,000. If the calculated net worth exceeds $25,000, the warehouseman may satisfy any deficiency in net worth between the $25,000 minimum requirement and such calculated net worth by furnishing bond (or acceptable substitute security) meeting the requirements of §1427.1083,
(iv) Have available sufficient funds to meet ordinary operating expenses,
(v) Have satisfactorily corrected, upon request by CCC, any deficiencies in the performance of any storage agreement with CCC,
(vi) Maintain accurate and complete inventory and operating records,
(vii) Use only card type warehouse receipts which are pre-numbered and pre-punched or such other document as CCC may prescribe,
(viii) Have available at the warehouse adequate and operable firefighting equipment for the type of warehouse and applicable stored commodity, and
(ix) Have a work force and equipment available to provide adequate storage and handling service.
(2) The warehouseman, officials, or supervisory employees of the warehouseman in charge of the warehouse operation must have the necessary experience, organization, technical qualifications, and skills in the warehousing business regarding the applicable commodities to enable them to provide proper storage and handling services.
(3) Warehouseman, officials and each of the supervisory employees of the warehouseman in charge of the warehouse operation must:
(i) Have a satisfactory record of integrity, judgment, and performance, and
(ii) Be neither suspended nor debarred under applicable CCC suspension and debarment regulations.
(4) The warehouse must:
(i) Be of sound construction, in good state of repair, and adequately equipped to receive, handle, store, preserve, and deliver the applicable commodity,
(ii) Be under the control of the contracting warehouseman at all times, and
(iii) Not be subject to greater than normal risk of fire, flood, or other hazards.
Except as otherwise provided in this subpart, a warehouse must be examined by a person designated by CCC before it may be approved by CCC for the storage and handling of the commodity and periodically thereafter to determine its compliance with CCC's standards and requirements.
Notwithstanding any other provisions of this report:
(a) The financial bond and original and periodic warehouse examination provisions of this subpart do not apply to any warehouseman approved or applying for approval for the storage and handling of cotton or cotton linters under CCC programs if the warehouse is licensed under the U.S. Warehouse Act for such commodity but a special examination will be made of such warehouse whenever CCC determines such action is necessary.
(b) A warehouseman who has a net worth of at least $25,000 but who fails, or whose warehouse fails, to meet one or more of the other standards of this subpart may be approved if:
(1) CCC determines that the warehouse services are needed and the warehouse storage and handling conditions provide satisfactory protection for the commodity,
(2) The warehouseman furnishes such additional bond coverage (or cash or acceptable negotiable securities or legal liability insurance policy) as may be prescribed by CCC.
[44 FR 67085, Nov. 23, 1979, as amended by Amdt. 3, 50 FR 16455, Apr. 26, 1985; 56 FR 11502, Mar. 19, 1991; 80 FR 139, Jan. 2, 2015]
(a) CCC will approve a warehouse if it determines that the warehouse meets the standards set forth in this subpart. CCC will send a notice of approval to the warehouseman. Approval under this subpart, however, does not relieve the warehouseman of the responsibility for performing the warehouseman's obligations under any agreement with CCC or any other agency of the United States.
(b) Except as otherwise provided in this subpart:
(1) CCC will not approve the warehouse if CCC determines that the warehouse does not meet the standards set forth in this subpart, and
(2) CCC will send any notice of rejection of approval to the warehouseman. This notice will state the cause(s) for such action. Unless the warehouseman or any officials or supervisory employees of the warehouseman are suspended or debarred, CCC will approve the warehouse if the warehouseman establishes that the causes for CCC's rejection of approval have been remedied.
(c) If rejection of approval by CCC is due to the warehouseman's failure to meet the standards set forth:
(1) In §1427.1082, other than the standard specified in §1427.1082(c)(2), the warehouseman may, at any time after receiving notice of such action, request reconsideration of the action and present to the Director, KCCO, in writing, information in support of such request. The Director will consider such information in making a determination and notify the warehouseman in writing of such determination. The warehouseman may, if dissatisfied with the Director's determination, obtain a review of the determination and an informal hearing by filing an appeal with the Deputy Administrator, Commodity Operations, Farm Service Agency (FSA). The time of filing appeals, forms for requesting an appeal, nature of the informal hearing, determination and reopening of the hearing will be as prescribed in the FSA regulations governing appeals, 7 CFR part 780. When appealing under such regulations, the warehouseman will be considered as a “participant”; and
(2) In §1427.1082(c)(2), the warehouseman's administrative appeal rights with respect to suspension and debarment shall be in accordance with applicable CCC regulations. After expiration of a period of suspension or debarment, a warehouseman may, at any time, apply for approval under this subpart.
[Amdt. 3, 50 FR 16455, Apr. 26, 1985, as amended at 80 FR 138, 139, Jan. 2, 2015]
(a) If warehousing services in any area cannot be secured under the provisions of this subpart and no reasonable and economical alternative is available for securing such services for commodities under CCC programs, the President or Executive Vice President, CCC may exempt, in writing, applicants in such area from one or more of the standards of this subpart and may establish such other standards as are considered necessary to safeguard satisfactorily the interests of CCC.
(b) Warehousemen who are currently under contract with CCC will be required to meet the terms and conditions of these regulations at the time of renewal of their contract.
[44 FR 67085, Nov. 23, 1979, as amended at 44 FR 74797, Dec. 18, 1979]
Source: 70 FR 67343, Nov. 7, 2005, unless otherwise noted.
(a) For the purposes of this subpart, eligible ELS cotton is domestically produced baled ELS cotton that is:
(1) Opened by an eligible domestic user on or after February 7, 2014, or
(2) Exported by an eligible exporter on or after February 7, 2014, during a Friday through Thursday period in which a payment rate determined under §1427.1207 is in effect, and that meets the requirements of paragraphs (b) and (c) of this section;
(b) Eligible ELS cotton must be either:
(1) Baled lint, including baled lint classified by USDA's Agricultural Marketing Service as Below Grade; or
(2) Loose.
(c) Eligible ELS cotton must not be:
(1) ELS for which a payment, under the provisions of this subpart, has been made available;
(2) Imported ELS cotton;
(3) Raw, unprocessed motes;
(4) Textile mill wastes; or
(5) Semi-processed or re-ginned, processed motes.
[70 FR 67343, Nov. 7, 2005, as amended at 73 FR 65724, Nov. 5, 2008; 80 FR 138, Jan. 2, 2015]
(a) For the purposes of this subpart, the following persons shall be considered eligible domestic users and exporters of ELS cotton:
(1) A person regularly engaged in the business of opening bales of eligible ELS cotton to manufacturing such cotton into cotton products in the United States (a domestic user), who has entered into an agreement with CCC to participate in the ELS Cotton Competitiveness Payment Program; or
(2) A person, including a producer or CMA approved under part 1425 of this chapter, regularly engaged in selling eligible ELS cotton for exportation from the United States (an exporter), who has entered into an agreement with CCC to participate in the ELS Cotton Competitiveness Payment Program.
(b) Payment applications must contain the documentation required by this subpart, an ELS Cotton Domestic User/Exporter Agreement and additional information that may be requested by CCC.
(a) The payment rate for payments made under this subpart will be determined as follows:
(1) Beginning the Friday on or following August 1 and ending the week in which the LFQc, the LFQf, the USPFEc, and the USPFEf prices first become available, the payment rate will be the difference between the USPFE and the LFQ in the fourth week of a consecutive 4-week period in which the USPFE exceeded the LFQ each week, and the adjusted LFQ was less than 134 percent of the current crop year loan level for U.S. base quality Pima cotton in all weeks of the 4-week period; and
(2) Beginning the Friday-through-Thursday week after the week in which the LFQc, the LFQf, the USPFEc, and the USFEf prices first become available and ending the Thursday following July 31, the payment rate will be the difference between the USPFEc and the LFQc in the fourth week of a consecutive 4-week period in which the USPFEc exceeded the LFQc each week, and the adjusted LFQc was less than 134 percent of the current crop year loan level for base quality U.S. Pima in all weeks of the 4-week period. If either or both the USPFEc and the LFQc are not available, the payment rate may be the difference between the USPFEf and the LFQf.
(b) Whenever a 4-week period under paragraph (a) of this section contains a combination of LFQ, LFQc, and LFQf for only one to three weeks, such as may occur in the spring when the LFQ is succeeded by the LFQc and the LFQf (spring transition), and at the start of a new marketing year when the LFQc and the LFQf are succeeded by the LFQ (marketing year transition), under paragraphs (a)(1) and (a)(2) of this section, during both the spring transition and the marketing year transition periods, the LFQc and USPFEc, in combination with the LFQ and USPFE, will, to the extent practicable, be considered during such 4-week periods to determine whether a payment is to be issued. During both the spring transition and the marketing year transition periods, if either or both USPFEc price and the LFQc are not available, the USPFEf and the LFQf in combination with the USPFE price and LFQ will be taken into consideration during such 4-week periods to determine whether a payment is to be issued.
(c) For purposes of this subpart, regarding the determination of the USPFE, USPFEc, USPFEf, the LFQ, the LFQc, and the LFQf:
(1) If daily quotations are not available for one or more days of the 5-day period, the available quotations during the period will be used;
(2) If none of the USPFE, USPFEc, or USPFEf prices is available, or if none of the LFQ, LFQc, or LFQf is available, the payment rate will be zero and will remain zero unless and until sufficient USPFE prices or the LFQ again becomes available, the USPFE, USPFEc, or USPFEf price exceeds the LFQ, the LFQc, or the LFQf, as the case may be, and the LFQ, the LFQc, or the LFQf, as the case may be, adjusted for transportation, is less than 134 percent of the current crop year loan rate for base quality U.S. Pima for 4 consecutive weeks.
(d) Payment rates for loose lint that is of a suitable quality, without further processing, for spinning, papermaking or bleaching, will be based on a percentage of the basic rate for baled lint, as specified in the ELS Cotton Domestic User/Exporter Agreement.