80_FR_12366 80 FR 12321 - Pima Agriculture Cotton Trust Fund and Agriculture Wool Apparel Manufacturers Trust Fund

80 FR 12321 - Pima Agriculture Cotton Trust Fund and Agriculture Wool Apparel Manufacturers Trust Fund

DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

Federal Register Volume 80, Issue 45 (March 9, 2015)

Page Range12321-12332
FR Document2015-04385

This final rule implements the Pima Agriculture Cotton Trust Fund (Agriculture Pima Trust) and the Agriculture Wool Apparel Manufacturers Trust Fund (Agriculture Wool Trust) Fund established in the Agricultural Act of 2014 (Farm Bill). The Agriculture Pima Trust provides annually for one payment, called the Pima Cotton Payments. The Agriculture Wool Trust provides annually for four payments. The first payment under the Agriculture Wool Trust is currently administered by the Department of Commerce's Office of Textiles and Apparel (OTEXA), and is called the Grants to Manufacturers of Certain Worsted Wool Fabrics. This program is being transferred from OTEXA to the Secretary of Agriculture (Secretary), who will administer the payment for the 2015-2019 calendar years, and will be called Payments to Manufacturers of Certain Worsted Wool Fabrics. The second payment is called Monetization of the Wool TRQ. The Farm Bill requires the Secretary to determine a monetary amount equivalent to what a person would have saved if OTEXA's Wool Tariff Rate Quota program (Wool TRQ) were still in effect. This payment will be based on OTEXA's Wool Tariff Rate Quota program, which terminated at the end of calendar year 2014. The Monetization of the Wool TRQ will be administered by the Secretary for the 2015-2019 calendar years. The third payment is called the Wool Yarn, Wool Fiber, and Wool Top Duty Compensation Payment. Payments are made to processors of wool yarn, wool fiber, and wool top to compensate them for termination of the suspension of import duties on such wool. This payment will be administered by the Secretary for the 2015-2019 calendar years. The fourth payment is called the Refund of Duties Paid on Imports of Certain Wool Products. This program is currently administered by the Department of Homeland Security's Customs and Border Protection (CBP) through calendar year 2015. The program will be transferred in calendar year 2016 to the Secretary, who will administer the program for the 2016-2019 calendar years. Regulations for the fourth payment will be published at a later date.

Federal Register, Volume 80 Issue 45 (Monday, March 9, 2015)
[Federal Register Volume 80, Number 45 (Monday, March 9, 2015)]
[Rules and Regulations]
[Pages 12321-12332]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-04385]



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Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules 
and Regulations

[[Page 12321]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1471

RIN 0551-AA86


Pima Agriculture Cotton Trust Fund and Agriculture Wool Apparel 
Manufacturers Trust Fund

AGENCY: Foreign Agricultural Service and Commodity Credit Corporation 
(CCC), USDA.

ACTION: Final rule with request for comments.

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

SUMMARY: This final rule implements the Pima Agriculture Cotton Trust 
Fund (Agriculture Pima Trust) and the Agriculture Wool Apparel 
Manufacturers Trust Fund (Agriculture Wool Trust) Fund established in 
the Agricultural Act of 2014 (Farm Bill). The Agriculture Pima Trust 
provides annually for one payment, called the Pima Cotton Payments. The 
Agriculture Wool Trust provides annually for four payments. The first 
payment under the Agriculture Wool Trust is currently administered by 
the Department of Commerce's Office of Textiles and Apparel (OTEXA), 
and is called the Grants to Manufacturers of Certain Worsted Wool 
Fabrics. This program is being transferred from OTEXA to the Secretary 
of Agriculture (Secretary), who will administer the payment for the 
2015-2019 calendar years, and will be called Payments to Manufacturers 
of Certain Worsted Wool Fabrics. The second payment is called 
Monetization of the Wool TRQ. The Farm Bill requires the Secretary to 
determine a monetary amount equivalent to what a person would have 
saved if OTEXA's Wool Tariff Rate Quota program (Wool TRQ) were still 
in effect. This payment will be based on OTEXA's Wool Tariff Rate Quota 
program, which terminated at the end of calendar year 2014. The 
Monetization of the Wool TRQ will be administered by the Secretary for 
the 2015-2019 calendar years. The third payment is called the Wool 
Yarn, Wool Fiber, and Wool Top Duty Compensation Payment. Payments are 
made to processors of wool yarn, wool fiber, and wool top to compensate 
them for termination of the suspension of import duties on such wool. 
This payment will be administered by the Secretary for the 2015-2019 
calendar years. The fourth payment is called the Refund of Duties Paid 
on Imports of Certain Wool Products. This program is currently 
administered by the Department of Homeland Security's Customs and 
Border Protection (CBP) through calendar year 2015. The program will be 
transferred in calendar year 2016 to the Secretary, who will administer 
the program for the 2016-2019 calendar years. Regulations for the 
fourth payment will be published at a later date.

DATES: This final rule is effective March 9, 2015. Comments concerning 
this final rule must be received by April 8, 2015, to be assured 
consideration. We are issuing this final rule without prior notice and 
opportunity for comment.

ADDRESSES: The Foreign Agricultural Service (FAS), USDA, invites 
interested persons to submit comments on this final rule. Comments may 
be submitted by one of the following methods:
     Federal e-Rulemaking Portal: Go to http://www.regulations.gov. Preferred method; follow the on-line instructions 
for submitting comments on the final rule.
     Email: Comments can also be addressed to Mr. Benjamin Chan 
at pimawool@fas.usda.gov. All comments submitted in response to this 
rule will be included in the record and will be made available to the 
public. FAS will make the comments publicly available online at: http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Benjamin Chan, Import Policies and 
Export Reporting Division, Office of Trade Policy, Foreign Agricultural 
Service, U.S. Department of Agriculture; email: pimawool@fas.usda.gov; 
202-720-8877.

SUPPLEMENTARY INFORMATION: 

Background

Purpose of the Regulatory Action

    This rule sets forth regulations regarding the implementation of 
the Pima Agriculture Cotton Trust Fund and the Agriculture Wool Apparel 
Manufacturers Trust Fund.

Subpart A. Pima Agriculture Cotton Trust Fund (Agriculture Pima Trust)

    The Agriculture Pima Trust was established in section 12314 of the 
Farm Bill. The Agriculture Pima Trust is a funding mechanism for pima 
cotton payments.
(1) Pima Cotton Payments
    The Secretary is required in section 12314 of the Farm Bill to 
establish an annual payment for domestic users of pima cotton, pima 
cotton yarn spinners, and pima cotton trade associations. The Foreign 
Agricultural Service (FAS) has been delegated the authority to 
administer this payment and to issue regulations to carry it out for 
calendar years 2014-2018. There was insufficient time to publish 
regulations for the 2014 payment and a notice was published in the 
Federal Register at 72 FR 29363 on May 2, 2014. Subpart A is applicable 
to annual payments in the 2015-2018 calendar years.
    The purpose of the annual payment is to provide monetary relief to 
certain persons in the U.S. that have incurred economic injury through 
the importation of pima cotton and have incurred tariffs on pima cotton 
fabric that are higher than tariffs on certain imported apparel 
articles made of pima cotton fabric. The first Pima Cotton Trust Fund 
was established under the Tax Relief and Health Care Act of 2006 and 
administered by the Customs and Border Protection Agency of the 
Department of Homeland Security (CBP) in 2007 and 2008. Section 12314 
of the Farm Bill authorized the Agriculture Pima Trust and pima cotton 
payment for the 2014-2018 calendar years. The Farm Bill authorizes $16 
million from the Commodity Credit Corporation (CCC) for each calendar 
year to fund annual payments.
    Section 12314 requires that a specific percentage of annual funding 
be distributed to certain sectors of the domestic pima cotton apparel 
industry. Twenty-five percent is to be paid to one or more nationally 
recognized associations established for the promotion of pima cotton 
for use in textile and apparel goods.
    Twenty-five percent is to be paid to domestic yarn spinners of pima 
cotton that, during the calendar year

[[Page 12322]]

immediately preceding the payment and during calendar year 2013, 
produced ring spun cotton yarns in the United States measuring less 
than 83.33 decitex (exceeding 120 metric number), in single and plied 
form. A payment to a yarn spinner is based on the ratio of the yarn 
spinner's 2013 production to the total production of all domestic yarn 
spinners in 2013 who qualify for a payment.
    The remaining fifty percent is to be paid to manufacturers that 
during both the calendar year immediately preceding the payment and 
during the 2013 calendar year used imported pima cotton fabric (80s or 
higher count and 2-ply in warp) to manufacture men's and boys' woven 
pima cotton shirts. A payment to a manufacturer is based on the ratio 
of the dollar value (excluding duty, shipping, and insurance) of the 
manufacturer's 2013 production of men's and boys' woven pima cotton 
shirts to the dollar value (excluding duty, shipping, and insurance) of 
the total production in 2013 of all men's and boys' woven pima cotton 
shirts by manufacturers who qualify for a payment. The Farm Bill 
explicitly requires exclusion of ``duty, shipping, and related costs'' 
from the reported dollar value of imported woven cotton shirting 
fabric. Of the costs ``related'' to shipping that are separate from the 
freight cost itself, insurance is generally the largest. As payments to 
manufacturers are based on a production ratio incorporating the 
intrinsic dollar value of the imported fabric, excluding ``duty, 
shipping, and related costs'' in both parts of the ratio, to limit 
``related costs'' to insurance gives effect to the purpose of the 
statute and affords simplicity of calculation.
    To apply for a payment, claimants are required to submit an 
affidavit by March 15 of the calendar year of the application for a 
payment. Payments will be made not later than April 14.
    Persons applying for a payment must provide information required by 
the Secretary through annual affidavits.

Subpart B. Agriculture Wool Apparel Manufacturers Trust Fund 
(Agriculture Wool Trust)

    The Agriculture Wool Trust was established in section 12315 of the 
Farm Bill. The Agriculture Wool Trust is a funding mechanism for four 
payments: (1) Payments to Manufacturers of Certain Worsted Wool 
Fabrics; (2) Monetization of the Wool Tariff Rate Quota; (3) Wool Yarn, 
Wool Fiber, and Wool Top Duty Compensation Payment; and (4) Refund of 
Duties Paid on Imports of Certain Wool Products.
(1) Payments to Manufacturers of Certain Worsted Wool Fabrics
    OTEXA has administered the Grants to Manufacturers of Certain 
Worsted Wool Fabrics program through calendar 2014. Section 4002(c)(6) 
of the Miscellaneous Trade and Technical Corrections Act of 2004, as 
amended, authorizes OTEXA to administer this payment through 2014. 
Section 12315(b)(1) of the Farm Bill directed the Secretary to continue 
to administer this payment for the 2015-2019 calendar years. The title 
is changed to ``Payments to Manufacturers of Certain Worsted Wool 
Fabrics'' to avoid confusion with competitive grant programs also 
administered by the Secretary.
    The purpose of this payment is to provide financial assistance to 
persons in the U.S. that manufactured worsted wool fabrics during 1999, 
2000, and 2001. Section 12315 of the Farm Bill authorizes the Secretary 
to continue to make these payments to the same persons that, during the 
calendar year immediately preceding the payment and during calendar 
years 1999, 2000, and 2001, were manufacturers of at least one of two 
kinds of worsted wool fabrics: (1) Subheading 9902.51.11 of the 
Harmonized Tariff Schedule of the United States (HTS) containing 85 
percent or more by weight of wool, with average fiber diameters greater 
than 18.5 microns; and (2) subheading 9902.51.15 of the HTS containing 
85 percent or more by weight of wool, with average fiber diameters of 
18.5 microns or less.
    All references to subheadings of the HTS in the context of this 
payment are to the subheadings as described in the HTS in 2014.
    As specified by the Miscellaneous Trade and Technical Corrections 
Act of 2004, an amount of $2.666 million is available each year for 
each HTS subheading of wool fabric, to be divided between persons based 
on the percentage of each person's total actual manufacturing of that 
type of worsted wool fabric during each of calendar years 1999, 2000, 
and 2001 in relation to the total manufacturing of such fabric by all 
persons who qualified for payments in those years.
    Persons applying for a payment must provide information required by 
the Secretary through annual affidavits.
(2) Monetization of the Wool Tariff Rate Quota (TRQ)
    The Wool TRQ was established in Title V of the Trade and 
Development Act of 2000, and provided for temporary duty reductions--
i.e., lower duty rates--on limited quantities of two categories of 
worsted wool fabrics suitable for use in making suits, suit-type 
jackets, or trousers for men and boys. The TRQ has been administered 
since 2004 by OTEXA, and the authority for the TRQ expired on December 
31, 2014.
    This worsted wool fabric is of the kind described in subheading 
9902.51.11 of the HTS with average fiber diameters greater than 18.5 
microns, and subheading 9902.51.15 of the HTS with average fiber 
diameters of 18.5 microns or less. A third worsted wool fabric HTS 
subheading was added to the TRQ by the Miscellaneous Trade Act of 2004, 
subheading 9902.51.16 of the HTS, with average fiber diameters of 18.5 
microns or less.
    All references to subheadings of the HTS in the context of this 
payment are to the subheadings as described in the 2014 HTS. The 
subheading references are to a past HTS because these subheadings have 
expired and have been subsumed under other HTS headings in 2015. 
Congress also used these now expired HTS subheadings in the Farm Bill, 
further necessitating their use here. The term ``duty paid'' means the 
dollar amount of the duty actually paid by an importer in the calendar 
year immediately preceding the payment. In other words, duty paid 
equals the applicable duty rate multiplied by the quantity of worsted 
wool fabric imported. The term ``lower duty rate'' means the rate of 
duty that would have been applied under the 2014 HTS because of the 
duty reduction percentage required by the Wool TRQ that ended on 
December 31, 2014.
    On February 7, 2014, Congress created in section 12315(e) of the 
Farm Bill a new payment that ``monetizes'' OTEXA's Wool TRQ. Because 
the lower duty rate is no longer available to importers after December 
31, 2014, when authority for the TRQ expired, Congress decided to 
monetarily compensate importers of worsted wool fabric of the kind 
covered by the three HTS subheadings for the additional cost of the 
increased tariff. Congress accomplished this in section 12315(e) by 
requiring that in the event that the Wool TRQ administered by OTEXA 
should expire during the administration of the Agriculture Wool Trust 
by the Secretary (through 2019), the Secretary shall determine an 
amount ``. . . that is equal to the amount the manufacturer or 
successor-in-interest would have saved during the calendar year of the 
payment if the suspension [or reduction] of duty on wool fabrics were 
in effect.'' The Secretary has delegated this function to FAS at 7 CFR 
2.43.
    Section 12315(e) provides that only the person (or a successor-in-
interest to the person) that imported worsted wool

[[Page 12323]]

fabric involving one or more of the three HTS subheadings covered by 
this payment is eligible for the payment. To be eligible for a payment, 
the person must also have used the imported worsted wool fabric to 
produce in the U.S. suits, suit-type jackets, or trousers for men and 
boys (or, in the case of imported wool of the kind described in HTS 
subheading 9902.51.16, must have manufactured the wool fabric) during 
the calendar year immediately preceding the payment.
    The worsted wool fabric covered by the three HTS subheadings under 
this payment are either imported directly by persons (i.e., importing 
manufacturer), in which case the person directly purchased the imported 
worsted wool fabric and paid the duty, or imported indirectly (i.e., 
non-importing manufacturer) through a third party broker that had 
directly paid the duty. The payment applies to persons that either 
directly or indirectly imported worsted wool fabric.
    The calendar year immediately preceding the payment is the time 
period that will be used to establish the basis for calculating a 
payment. This historical basis applies to the duty paid and to the 
production or processing by the person applying for a payment. The duty 
paid arises from application of the duty rate applicable to imports of 
one or more of the three worsted wool fabrics of the kind described in 
the three subheadings covered by the payment. To be eligible for a 
payment, during the calendar year immediately preceding the payment a 
person must have imported, directly or indirectly, one or more of these 
HTS subheadings of worsted wool fabric, and used such worsted wool 
fabric in the U.S. to make men's and boy's suits, suit-type jackets, or 
trousers (or, in the case of subheading 9902.51.16, manufactured such 
worsted wool fabric).
    Section 12315(e) of the Farm Bill anticipates a time when the TRQ's 
lower duty rate is no longer in effect, acknowledges that duty rates 
will have increased upon expiration of the TRQ, and focuses on the 
savings that an importer (direct or indirect) of worsted wool fabric 
would have realized had the lower duty rate remained in effect. Section 
12315(e) states that the savings is ``. . . an amount . . . equal to 
the amount the manufacturer or successor-in-interest would have saved 
during the calendar year . . . if the suspension [or reduction] of duty 
on wool fabrics were in effect.'' The focus of the savings is on the 
difference between the duty paid for the worsted wool fabric in the 
calendar year immediately preceding the payment, and the duty that 
would have been paid on the same quantity of worsted wool fabric if the 
lower duty rate had applied. This allows the payment to address the 
``savings'' contemplated in 12315(e) of the Farm Bill as close to the 
real time experience of the person as is administratively possible. For 
example, a person's import of worsted wool fabric in calendar year 2016 
will be the basis for calculating the person's payment in 2017. This is 
consistent with the statute's focus on the savings that would have been 
realized if a TRQ were still in effect, and is also consistent with 
OTEXA previously basing a TRQ allocation on a period of time 
immediately prior to the allocation.
    The payment will be made to eligible persons by April 15 of the 
calendar year subsequent to the year of the person's reported wool 
fabric imports. This allows the Secretary to base the payment on the 
person's total actual imports of wool fabric during the calendar year 
immediately preceding the payment.
    The savings involves three factors spread over two time periods: 
(1) The duty paid at the higher duty rate applicable to the worsted 
wool fabric described in the applicable 2014 HTS subheadings in the 
calendar year immediately preceding the payment; (2) the production or 
further processing of the imported worsted wool fabric in the calendar 
year immediately preceding the payment; and (3) the duty paid at the 
lower duty rate applicable to that HTS subheading of worsted wool 
fabric in 2014, the last year the TRQ was effective. The higher value 
of duty paid in the calendar year immediately preceding the payment is 
used to calculate the 2016-2019 payments. However, for the 2015 
payment, the higher duty rate in the 2015 HTS will be used instead of 
the duty rate applicable in the calendar year immediately preceding the 
payment, which would be 2014. The reason for this exception for the 
2015 payment is that 2014 is both the last year in which the TRQ's 
lower duty rate was still in effect, and is also the calendar year 
immediately preceding the payment (2015). As a result, for the 2015 
payment, a proxy is necessary to serve as the higher duty rate in the 
calendar year immediately preceding the payment. It is necessary to 
create such a proxy and generate a 2015 payment, because the statute 
requires that this payment be made in any year in which the wool TRQ is 
not in effect. The first year the TRQ is not in effect is calendar year 
2015. Notwithstanding this proxy for the higher duty rate for a 2015 
payment, the calendar year immediately preceding the payment (2014) 
will still be used to establish that production or processing by the 
eligible person occurred (which is an eligibility requirement).
    There were three essential data components of the wool TRQ that 
terminated at the end of the 2014 calendar year: (1) The quantity of 
imported wool fabric subject to the lower duty rate; (2) the price of 
the imported wool fabric; and (3) the person's actual production of 
worsted wool suits, suit-type jackets, or trousers for men and boys 
(or, in the case of wool under HTS subheading 9902.51.16, manufactured 
the wool fabric). This information has been annually collected by OTEXA 
by means of affidavits supplied by persons applying for a payment. The 
Secretary will continue to collect this information through annual 
affidavits to ensure that the person, during the calendar year 
immediately preceding the payment, (1) imported, either directly or 
indirectly, the quantity of worsted wool fabric of the kind described 
under one or more of the HTS subheadings covered by this payment, and 
(2) produced in the U.S. suits, suit-type jackets, or trousers for men 
and boys (or, in the case of wool under HTS subheading 9902.51.16, 
manufactured the wool fabric).
    The dollar value and quantity of such imports are also factors in 
determining the savings that would have been realized because of the 
TRQ. Dollar value data effectively captures the price of such fabric 
and the dollar amount paid by the person. OTEXA has collected data 
about the dollar value and quantity of such imports by requiring the 
person to report the dollar value and quantity of the imports during 
the first six months of the calendar year of the license allocation. 
The Secretary will continue to collect the person's reported dollar 
value and quantity of imports of worsted wool fabric, but will require 
information about imports for the entire calendar year immediately 
preceding the payment. The savings in the context of the payment can be 
restated accordingly. In any calendar year in which the lower duty rate 
on worsted wool fabric of the kind described in subheadings 9902.51.11, 
9902.51.15, and 9902.51.16 of the 2014 HTS is not in effect, a person 
(or a successor-in-interest of the person) that, during the calendar 
year immediately preceding the payment, in the U.S., (1) directly or 
indirectly imported worsted wool fabric of the kind described under one 
or more of the three HTS subheadings covered by this payment, and (2) 
used the worsted wool fabric to produce suits, suit-type jackets, or

[[Page 12324]]

trousers for men and boys (or, in the case of worsted wool fabric 
covered by subheading 9902.51.16, manufactured the worsted wool 
fabric), is eligible for a payment that is equivalent to the difference 
between the higher duty paid on such worsted wool fabric in the 
calendar year immediately preceding the payment and the reduced duty 
that would have been payable under the TRQ (in 2014) on the quantity of 
worsted wool fabric imported in the calendar year immediately preceding 
the payment. For the purpose of calculating the payment for each of the 
2015-2019 calendar years, it will be assumed that 100% of the person's 
imports were covered by the lower duty. The rationale for this 
assumption is that under the wool TRQ that expired on December 31, 
2014, persons that received licenses to import up to specific amounts 
of worsted wool fabric at reduced duty rates never used the entire 
license allotment, and the excess allotment was left unused. In those 
cases, because 100% of the person's imports were in fact covered by the 
available lower duty rate under the TRQ, the savings referenced in 
section 12315(e) should also apply to 100% of a person's imports.
    The duty rate codified in the 2014 HTS applicable to imports of 
worsted wool fabric in the calendar year immediately preceding the 
payment fall into one of three categories: (1) The general duty rate 
that is applicable to worsted wool fabric covered by the subheading 
unless one of the other two categories applies; (2) the duty rate is 
0%, because imports from certain listed countries are duty free; and 
(3) duty rates applicable to imports from specific countries (e.g., 
7.5% duty rate for imports of worsted wool fabric under subheading 
9902.51.11 of the HTS from Oman in 2015). Because the HTS is statutory, 
one of the three categories must be applied when calculating a monetary 
payment. Similarly, in years following 2014, the applicable duty may 
vary as a function of the country of origin of the imported fabric. In 
any given year, the country of origin of the worsted wool fabric will 
affect the applicable duty rate and resulting duty paid used to 
calculate the payment. The duty rate applicable to worsted wool fabric 
under subheadings 9902.51.15 and 9902.51.16 of the 2014 HTS was 0%, and 
for subheading 9902.51.11 of the 2014 HTS was 10%. Thus, in any given 
year, duty rates may vary based on the country of origin of the 
imported fabrics, and as a result, the amount of the payment may be 
significantly affected.
    The payment will be annually calculated for each of the 2015-2019 
calendar years as follows. For each HTS subheading, the savings of the 
person for any given calendar year will be the difference between the 
higher duties paid in the calendar year preceding the payment and the 
duties that would have been payable at the lower 2014 duty rate. The 
savings for each of the three subheadings will then be added together, 
the sum of which will equal the annual payment for that person.
    Two simple examples, the first involving imports in 2017 and the 
other in 2015, illustrate how this calculation will work.
    The first example applies to a payment in 2017. Under the TRQ that 
expired on December 31, 2014, worsted wool fabrics entering the United 
States under HTS subheadings 9902.51.15 and 9902.51.16 were assessed 
zero duty, and worsted wool fabrics from Oman entering under 9902.51.11 
were assessed a 10% duty. Starting on January 1, 2017, assume that 
imports entering the United States of worsted wool fabrics previously 
described under HTS subheadings 9902.51.15 and 9902.51.16 (but in 2017 
actually entering under a different HTS subheading, because of the 
expiration of the particular subheadings under HTS chapter 99) are 
assessed a 20% duty, and worsted wool fabrics from Oman previously 
described under 9902.51.11 are assessed a 10% duty.
    A person imports 200 square meters of worsted wool fabric in 2017, 
100 square meters of which is of the kind described by HTS subheadings 
9902.51.15 and 9902.51.16, and the remaining 100 square meters is of 
the kind described in HTS subheading 9902.51.11, imported from Oman. 
The person reports a dollar value of $1 per square meter. For the 100 
square meters of worsted wool described under HTS subheadings 
9902.51.15 and 9902.51.16, the calculation would be 0.20 (20% converted 
to a numeric value), which is the duty rate in 2016, minus 0 (2014 duty 
rate, 0%, converted to a numeric value), multiplied by 100 (dollar 
value), which would equal $20 ((0.20-0) x 100). For the 100 square 
meters of worsted wool fabric described under HTS subheading 9902.51.11 
and imported from Oman, the calculation would be 0.10 (10% converted to 
a numeric value), the duty rate in 2015, the calendar year immediately 
preceding the payment, minus 0.10 (10%, the 2016 duty rate when Oman is 
the country of origin) multiplied by 100 (dollar value), which would 
equal $0 ((0.10-0.10) x 100).
    The second example applies to a payment in 2015 using the ``2015 
proxy'' discussed above. Recall that under the applicable TRQ that 
expired on December 31, 2014, worsted wool fabrics entering the United 
States under HTS subheadings 9902.51.15 and 9902.51.16 were assessed 
zero duty, and worsted wool fabrics from Oman entering under 9902.51.11 
were assessed a 10% duty. Starting on January 1, 2015, imports entering 
the United States of worsted wool fabrics previously described under 
HTS subheadings 9902.51.15 and 9902.51.16 are assessed a 25% duty, and 
imports of worsted wool fabrics from Oman previously described under 
9902.51.11 are assessed a 20% duty.
    A person imports 200 square meters of worsted wool fabric in 2015, 
100 square meters of which is of the kind previously described by HTS 
subheadings 9902.51.15 and 9902.51.16, and the remaining 100 square 
meters is of the kind previously described in HTS subheading 9902.51.11 
imported from Oman. The person reports a dollar value of $1 per square 
meter. For the 100 square meters of worsted wool under HTS subheadings 
9902.51.15 and 9902.51.16, the calculation would be 0.25 (25% converted 
to a numeric value), which is the 2015 higher duty proxy used when the 
calendar year immediately preceding the payment is 2014, minus 0 (2014 
duty rate, 0%, converted to a numeric value), multiplied by 100 (dollar 
value), which would equal $25 ((0.25-0) x 100). For the 100 square 
meters of worsted wool fabric under HTS subheading 9902.51.11 imported 
from Oman, the calculation would be 0.20 (20% converted to a numeric 
value), the 2015 higher duty proxy when the calendar year immediately 
preceding the payment is 2014, minus 0.10 (10%, the 2014 duty rate when 
Oman is the country of origin) multiplied by 100 (dollar value), which 
would equal $10 ((0.20-0.10) x 100). The statutory language of section 
12315 directs the Secretary to determine the savings that the person 
would have realized if the lower duty rate had been in effect. Thus, it 
is not necessary to determine what the person would have done with the 
savings realized from the lower duty rate. Nor is it necessary to 
inquire about the person's imports in a year that also include imported 
worsted wool fabric that is of the kind under HTS subheadings other 
than those covered by this payment, imported worsted wool fabric not 
subject to the duty reduction, or domestic wool.
    As discussed earlier, the payment applies to direct and indirect 
imports of

[[Page 12325]]

worsted wool fabric of the kind described in the three specific HTS 
subheadings. If the import was through a third party broker, the person 
must so state in the affidavit prior to the payment, and provide any 
other information required by FAS. For persons that are indirect 
importers of worsted wool fabric, the dollar value of the imports 
reported in their affidavit will be subject to a 10% reduction by the 
Secretary. The reason for this reduction is that the broker that 
directly imported the worsted wool fabric is assumed to sell it to the 
person who submits the affidavit for an amount higher than the tariff 
price. The 10% reduction is intended to compensate for that higher 
price, and make the reported price paid by indirect importers more 
equivalent to the price paid by direct importers. OTEXA also 
administered this 10% reduction in the reported price paid by indirect 
importers as part of its administration of the wool TRQ.
    Persons that imported worsted wool fabric directly are required to 
submit to FAS as part of the affidavit package scanned copies of the 
CBP Form 7501 ``Entry Summary'' for the relevant calculations made in 
the affidavit. Persons that imported worsted wool fabric indirectly are 
required to submit to FAS as part of the affidavit package invoices 
from third party brokers for the relevant calculations made in the 
affidavit.
    Persons applying for a payment must provide information required by 
the Secretary through annual affidavits.
(3) Wool Yarn, Wool Fiber, and Wool Top Duty Compensation Payment
    All references to subheadings of the HTS in the context of this 
payment are to the subheadings as described in the 2014 HTS.
    The duty on imported wool yarn of the kind described in subheading 
9902.51.13 of the HTS, and the duty on wool fiber and wool top of the 
kind described in subheading 9902.51.14 of the HTS were suspended in 
their entirety in section 503 of the Trade and Development Act of 2000. 
The total duty suspension for both subheadings has been extended three 
times since then, most recently through December 31, 2014. Section 
12315(e) of the Farm Bill requires the Secretary to make payments to 
processors of wool yarn, fiber, and top of the kind described in 
subheadings 9902.51.13 and 9902.51.14 of the HTS, respectively, in 
amounts that the processors would have saved if the duty suspension had 
been in effect.
    To be eligible for a payment, during the calendar year immediately 
preceding the payment a person must have imported into the U.S., 
directly or indirectly, wool yarn, fiber or top of the kind described 
in subheadings 9902.51.13 and 9902.51.14, and manufactured such wool 
yarn, fiber, or top in the U.S.
    The duty rates in chapter 99 of the HTS for subheadings 9902.51.13 
and 9902.51.14 are listed in three categories: (1) The general duty 
rate applicable to wool yarn covered by the subheading, unless one of 
the other two categories applies; (2) the duty rate is 0 because 
imports from certain listed countries are duty free; and (3) duty rates 
applicable to imports from specific countries (e.g., 2.4% duty rate for 
imports of wool yarn from Oman in calendar year 2014). Because the HTS 
is statutory, one of the three categories must be applied when 
calculating a monetary payment equivalent to the savings that a person 
would have realized if the suspension of the duty rate had been in 
effect. Thus, the country of origin of the wool yarn, wool fiber, or 
wool top, may significantly affect the duty rate used to calculate a 
person's payment. The general duty rate applicable to subheading 
9902.51.13 in 2000 was 6% of the import price of the imported wool yarn 
at the time the duties were suspended. The general duty rate reverted 
to 6% of the import price of the imported wool yarn in 2015.
    However, subheading 9902.51.14, which expired at the end of 2014, 
applied to wool fiber and top now described in eight subheadings of 
chapter 51 of the HTS, and the duty applicable to each subheading in 
chapter 51 varies. Thus, a determination of the applicable duty is 
subject to the determination of the Secretary in accordance with duty 
rates applicable to the specific sub-subheading of wool fiber or top 
imported.
    The difference between the 0% duty in effect during the duty 
suspension and the duty applicable in the calendar year immediately 
preceding the payment for the two HTS subheadings of wool yarn, fiber, 
and top (which is 100% of the duty) will be used to calculate duty 
compensation payments. Section 12315(e) of the Farm Bill anticipates a 
time when the total duty suspension is no longer in effect, 
acknowledges that duty rates will have increased upon expiration of the 
total duty suspension, and focuses on the savings that an importer 
(direct or indirect) of wool yarn, fiber, or top would have realized 
had the 0% duty rate remained in effect. Section 12315(e) of the Farm 
Bill states that the annual payment is ``. . . an amount . . . equal to 
the amount the manufacturer or successor-in-interest would have saved 
during the calendar year . . . if the suspension . . . of duty on wool 
fabrics were in effect.'' The focus of the savings is on the difference 
between the duty paid for the wool yarn, fiber or top of the kind 
described in subheadings 9902.51.13 and 9902.51.14 in the calendar year 
immediately preceding the payment, and the 0% duty that would have been 
paid for such wool imported into the U.S., directly or indirectly, if 
the total duty suspension were still in effect. This allows the payment 
to address the ``savings'' contemplated in 12315(e) of the Farm Bill as 
close to the real time experience of the person as is administratively 
possible. For example, a person's import of wool yarn, fiber or top in 
calendar year 2016 will be the basis for calculating the person's 
payment in 2017. This is consistent with the statute's focus on the 
savings that would have been realized if a duty suspension were still 
in effect, and is also consistent with CBP's treatment of wool yarn, 
fiber or top in its Wool Duty Refund Program, in which it based the 
Duty Refund payment on the prior year. The payment will be made to 
eligible persons by April 15 of the calendar year subsequent to the 
year of the person's reported imports. This allows the Secretary to 
base the payment on the person's total actual imports of wool yarn, 
fiber or top during the calendar year immediately preceding the 
payment.
    The savings involves three factors spread over two time periods: 
(1) The higher duty rate applicable to the wool yarn, fiber or top 
described in the applicable 2014 HTS subheadings in the calendar year 
immediately preceding the payment; (2) the further processing of the 
imported wool yarn, fiber or top in the calendar year immediately 
preceding the payment; and (3) the total duty suspension applicable to 
that HTS subheading of wool yarn, fiber or top in 2014, the last year 
the duty suspension was effective. The higher duty rate paid by the 
eligible person in the calendar year immediately preceding the payment 
is used to calculate the 2016-2019 payments. However, for the 2015 
payment, the higher duty rate in the 2015 HTS will be used instead of 
the total duty suspension effective through the 2014 calendar year. The 
reason for this exception for the 2015 payment is that 2014 is both the 
last year in which the total duty suspension was still in effect and 
the calendar year immediately preceding the payment (in 2015). As a 
result, for the 2015 payment, a proxy is necessary for the higher duty 
rate. It is necessary to create this proxy for the 2015 payment because 
Congress

[[Page 12326]]

requires that this payment be made when the duty suspension is no 
longer in effect. The first year the duty suspension is not in effect 
is calendar year 2015. Finally, for a 2015 payment, the calendar year 
immediately preceding the payment will still be used to establish the 
dollar value of the imported wool yarn, fiber, or top by the eligible 
person.
    The dollar value of the wool yarn, fiber or top imported into the 
U.S. is also a factor in determining the savings that would have been 
realized because of the TRQ. Dollar value data effectively captures the 
price of such fabric and the dollar amount paid by the person. CBP has 
not been collecting this data in the context of its Wool Duty Refund 
Program. But in light of the statutory requirement to capture the 
savings that would have been realized for wool yarn, fiber or top 
imported into the U.S. had the duty suspension been in effect, the 
Secretary will collect the person's reported dollar value and quantity 
of imports of wool yarn, fiber or top imported into the U.S. during the 
entire calendar year immediately preceding the payment.
    The Secretary has determined that the intent of the savings 
language in section 12315 of the Farm Bill can be best realized by 
looking at what the person would have saved during the calendar year 
immediately preceding the payment. For example, the dollar value of the 
person's imports wool yarn, fiber, or top in calendar year 2014 will be 
the basis for calculating the payment in 2015 (in contrast to the proxy 
duty used for the 2015 payment). This allows the payment to address the 
``savings'' in section 12315(e) of the Farm Bill as close to the real 
time experience of the person as is administratively possible yet still 
cover the full prior year's imports.
    Other than with respect to the 2015 payment calculated using a 
proxy duty rate as described above, the duty compensation payment under 
this section will be equal to 100% of the duty paid for wool yarn, 
fiber, or top of the kind described in subheadings 9902.51.13 and 
9902.51.14 imported in the calendar year immediately preceding the 
payment.
    The two HTS subheadings of imported wool yarn, fiber, or top 
covered by this payment are either imported directly by persons, in 
which case the person also directly paid the duty, or imported 
indirectly through a third party broker that directly paid the duty. 
The payment applies to persons that either directly or indirectly 
imported wool yarn, fiber, and top. If the import was through a third 
party broker, the person must so state in the affidavit prior to the 
payment, and provide any other information required by FAS. For persons 
that are indirect importers of wool yarn, fiber, or top, the dollar 
value of the imports reported in their affidavit will be subject to a 
10% reduction by the Secretary. The reason for this reduction is that 
the broker that directly imported the wool yarn, fiber, or top is 
assumed to sell it to the person who submits the affidavit for an 
amount higher than the price merely increased by the applied duty. The 
10% reduction is intended to compensate for that higher price, and make 
the reported price paid by indirect importers more equivalent to the 
price paid by direct importers. CBP also administers this 10% reduction 
in the reported price paid by indirect importers as part of its 
administration of the Wool Duty Refund Program (which includes 
subheadings 9902.51.13 and 9902.51.14).
    Persons that imported wool yarn, fiber or top directly are also 
required to submit to FAS as part of the affidavit package scanned 
copies of the CBP Form 7501 ``Entry Summary'' for the relevant 
calculations made in the affidavit. Persons that imported wool yarn, 
fiber or top indirectly are required to submit to FAS as part of the 
affidavit package invoices from third party brokers for the relevant 
calculations made in the affidavit.
    Persons applying for a payment must provide information required by 
the Secretary through annual affidavits.
(4) Refund of Duties Paid on Imports of Certain Wool Products
    CBP is administering this payment to U.S. manufacturers and 
processors of wool for duties paid on the imported wool in 2000, 2001, 
and 2002 through calendar year 2015. FAS will continue this payment for 
calendar years 2016-2019, and will publish regulations later next year. 
The regulations for this payment will be published at 7 CFR 1471.12.

Effective Date and Notice and Comment

    We are issuing this final rule without prior notice and opportunity 
for comment. The Administrative Procedure Act exempts rules ``relating 
to agency management or personnel or to public property, loans, grants, 
benefits, or contracts'' from the statutory requirement for prior 
notice and opportunity for comment 5 U.S.C. 553(a)(2). Accordingly, 
this rule may be made effective less than 30 days after publication in 
the Federal Register. However, we invite you to participate in this 
rulemaking by submitting written comments, data, or views. We will 
consider the comments we receive and may conduct additional rulemaking 
based on the comments. This rule allows FAS to provide adequate notice 
to eligible manufacturers about the new Pima Agriculture Cotton and 
Wool Apparel Manufacturers Trusts regulation so that they will be ready 
to begin filing for payments by March 15 in the case of Agriculture 
Pima Trust payment, and by March 1 in the case of the several 
Agriculture Wool Trust payments.

Executive Order 12630

    This Executive Order requires careful evaluation of governmental 
actions that interfere with constitutionally protected property rights. 
This rule does not interfere with any property rights and, therefore, 
does not need to be evaluated on the basis of the criteria outlined in 
Executive Order 12630.

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and Administrative Procedure Act (5 U.S.C. 553). It has been determined 
to be not significant for the purposes of Executive Order 12866 and was 
not reviewed by OMB for this purpose. A cost-benefit assessment of this 
rule was not completed.

Executive Order 12372

    This final rule is not subject to Executive Order 12372, which 
requires intergovernmental consultation with State and local officials. 
See the notice related to 7 CFR part 3015, subpart V, published at 48 
FR 29115 (June 24, 1983).

Executive Order 12988

    This final rule has been reviewed in accordance with Executive 
Order 12988. This rule would not preempt State or local laws, 
regulations, or policies unless they present an irreconcilable conflict 
with this rule. This rule would not be retroactive.

Executive Order 13132

    This final rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this final rule do not have 
any substantial direct effect on States, on the relationship between 
the Federal government and the States, or on the distribution of power 
and responsibilities among the various levels of government, nor does 
this final rule impose substantial direct compliance costs on State and 
local governments. Therefore, consultation with the States is not 
required.

[[Page 12327]]

Executive Order 13175

    This final rule has been reviewed for compliance with E.O. 13175. 
The policies contained in this final rule do not have tribal 
implications that preempt tribal law.

Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
FAS is not required by 5 U.S.C. 553 or any other law to publish a 
notice of proposed rulemaking with respect to the subject matter of 
this rule.

Civil Rights Impact Statement

    No major civil rights impact is likely to result from the 
announcement of this notice. It will not have a negative civil rights 
impact on very-low income, low income, and moderate income and minority 
populations.

Environmental Assessment

    The environmental impacts of this rule have been considered in a 
manner consistent with the provisions of the National Environmental 
Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), and FAS regulations 
for compliance with NEPA (7 CFR part 799). FAS has determined that NEPA 
does not apply to this rule and that no environmental assessment or 
environmental impact statement will be prepared.

Unfunded Mandates Reform Act

    This final rule does not impose any enforceable duty or contain any 
unfunded mandate as described under Title II of the Unfunded Mandates 
Reform Act of 1995 (UMRA). Therefore, this rule is not subject to the 
requirements of sections 202 and 205 of UMRA.

E-Government Act Compliance

    FAS 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, 
services and for other purposes. The forms, regulations, and other 
information collection activities required to be utilized by a person 
subject to this rule are available at: http://www.fas.usda.gov.

List of Subjects in 7 CFR Part 1471

    Agricultural commodities, Imports.

    For the reasons set forth in the preamble, 7 CFR part 1471 is added 
to read as follows:

PART 1471--PIMA AGRICULTURE COTTON TRUST FUND (AGRICULTURE PIMA 
TRUST) AND AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND 
(AGRICULTURE WOOL TRUST)

Subpart A--Agriculture Pima Trust
Sec.
1471.1 Provisions common to this subpart.
1471.2 Pima cotton payments.
1471.3 Affidavit of producers of ring spun pima cotton yarn.
1471.4 Affidavit of manufacturers of pima cotton shirts.
1471.5 Affidavit of pima cotton trade association.
Subpart B--Agriculture Wool Trust
1471.10 Provisions common to this subpart.
1471.11 Payments to manufacturers of certain worsted wool fabrics.
1471.12 [Reserved]
1471.13 Monetization of the wool tariff rate quota.
1471.14 Wool yarn, wool fiber, and wool top duty compensation 
payment.

    Authority: Sections 501-506, Pub. L. 106-200, (114 Stat. 299-
304); Section 4002, Pub. L. 108-429 (7 U.S.C. 7101 note); Section 
1633, Pub. L. 109-280 (120 Stat. 1166); Section 325, Pub. L. 110-343 
(122 Stat. 3875); Sections 12314 and 12315, Pub. L. 113-79 (7 U.S.C. 
2101 note and 7101 note).

Subpart A--Agriculture Pima Trust


Sec.  1471.1  Provisions common to this subpart.

    (a) Agriculture Pima Trust--(1) Establishment. The Agriculture Pima 
Trust has been established to provide funding for payments under this 
part.
    (2) Purpose. The purpose of the Agriculture Pima Trust is to reduce 
the injury to domestic manufacturers resulting from tariffs on cotton 
fabric that are higher than tariffs on certain apparel articles made of 
cotton fabric.
    (3) Funding availability. $16,000,000 will be available annually 
for eligible payments authorized under subpart A of this part.
    (4) Definitions. As used in this subpart:
    Agriculture Pima Trust means the Pima Agriculture Cotton Trust 
Fund.
    CCC means the Commodity Credit Corporation.
    FAS means the Foreign Agricultural Service.
    Secretary means the Secretary of Agriculture.
    Agriculture Pima Trust means the Pima Agriculture Cotton Trust 
Fund.
    U.S. means the United States of America.
    (b) Other provisions common to subpart A of this part--(1) 
Affidavits. FAS shall annually, not later than February 15 of the year 
of the applicable payment, make affidavits available on the FAS Web 
site, which can be found at http://www.fas.usda.gov/. Affidavits must 
be submitted electronically to pimawool@fas.usda.gov.
    (2) Filing deadline. Any person filing an affidavit under this part 
for a particular year must file the affidavit for such calendar year, 
during calendar years 2015 through 2018, not later than March 15 of the 
applicable calendar year.
    (3) Basic information. In addition to information required in 
Sec. Sec.  1471.3, 1471.4, and 1471.5, as applicable, every person 
applying for a payment must provide the following information, 
applicable to the year for which a payment is sought:
    (i) The current company name, address, contact, phone number of the 
person;
    (ii) The name and address of each plant or location of the person 
during the calendar year immediately preceding the payment; and
    (iii) A W-9 providing the Federal tax identification number of the 
person;
    (4) Standard Form 1199A. Every person claiming a payment must 
provide Standard Form 1199A, a direct deposit sign-up form, to 
facilitate any transfer of funds.
    (5) Affirmation. Every person applying for a payment must affirm in 
its affidavit that ``all information contained in the application is 
complete and correct and that the information does not contain a false 
claim, statement, or representation.''
    (6) Document retention. All persons receiving a payment under this 
part must maintain all pertinent documentation for 3 years after the 
year of receipt of the payment.
    (7) False statements. Persons providing false or fraudulent claims, 
or persons making materially false statements or representations in 
their affidavit, are subject to civil or criminal penalties pursuant to 
18 U.S.C. 1001.
    (8) Confidentiality. Specific business information that is marked 
``business confidential'' will be protected from disclosure to the full 
extent permitted by law.
    (9) Review of affidavits. Affidavits will be reviewed to determine 
whether they are complete and responsive to the content and form of 
affidavit requirements under this part.
    (10) Finality of determinations by Secretary. A determination by 
the Secretary about a payment under this part shall be final and is not 
subject to appeal or protest.
    (11) Timing of payments. A payment for which a person is eligible 
under this part will be disbursed in each of

[[Page 12328]]

calendar years 2015 through 2018, not later than April 15 of the 
applicable year.
    (12) Sequester. Payments covered by this part shall be subject to 
sequester of payments, if required by law.


Sec.  1471.2  Pima cotton payments.

    From available funds in the Agriculture Pima Trust, CCC will 
annually make payments for each of calendar years 2015 through 2018 as 
follows:
    (a) Twenty-five percent of the amounts in the Agriculture Pima 
Trust shall be paid to one or more nationally recognized associations 
established for the promotion of pima cotton for use in textile and 
apparel goods, as determined by the Secretary, during the calendar year 
immediately preceding the payment.
    (b) Twenty-five percent of the amounts in the Agriculture Pima 
Trust shall be paid to yarn spinners of pima cotton that produce ring 
spun cotton yarns in the U.S. during 2013 and the calendar year 
immediately preceding the payment, to be allocated to each yarn spinner 
in an amount that bears the same ratio as
    (1) The yarn spinner's production of ring spun cotton yarns in 
2013, measuring less than 83.33 decitex (exceeding 120 metric number) 
from pima cotton in single and plied form during calendar year 2013, 
bears to
    (2) The production of the yarns described in paragraph (b)(1) of 
this section during calendar year 2013 by all yarn spinners that 
qualify under this paragraph (b).
    (c) Fifty percent of the amounts in the Agriculture Pima Trust 
shall be paid to manufacturers that, during the calendar year 
immediately preceding the payment, certify, pursuant to the affidavit 
under Sec.  1471.4, they used imported pima cotton fabric during 
calendar year 2013 to produce such shirts, to be allocated to each 
manufacturer in an amount that bears the same ratio as
    (1) The dollar value (excluding duty, shipping, and insurance of 
imported woven pima cotton shirting fabric of 80s or higher count and 
2-ply in warp used by the manufacturer during calendar year 2013 to 
produce men's and boys' pima cotton shirts, bears to
    (2) The dollar value (excluding duty, shipping, and insurance of 
the fabric described in paragraph (c)(1) of this section used to 
manufacture men's and boy's pima cotton shirts in 2013 by all 
manufacturers that qualify under this paragraph (c).


Sec.  1471.3  Affidavit of producers of ring spun pima cotton yarn.

    In addition to reporting and information requirements in Sec.  
1471.1, the affidavit of a yarn spinner that is a producer of ring spun 
cotton yarn must be an affidavit provided annually by an officer of the 
yarn spinner that produces ring spun yarns affirming that:
    (a) During the calendar year immediately preceding the payment and 
during calendar year 2013, the yarn spinner used pima cotton to produce 
ring spun cotton yarns in the U.S. measuring less than 83.33 decitex 
(exceeding 120 metric number), in single and plied form;
    (b) During 2013, the yarn spinner actually produced the quantity, 
measured in pounds, of ring spun cotton yarns measuring less than 83.33 
decitex (exceeding 120 metric number), in single and plied form; and
    (c) The yarn spinner continues to maintain supporting documentation 
about such production during calendar year 2013 which shows the actual 
quantity of such yarns produced, and evidencing the yarns as ring spun 
pima cotton yarns, measuring less than 83.33 decitex (exceeding 120 
metric number), in single and plied form.


Sec.  1471.4  Affidavit of manufacturers of pima cotton shirts.

    (a) In general. In addition to applicable information requirements 
in Sec.  1471.1, an affidavit of a manufacturer that is a producer of 
men's and boys' pima cotton shirts must be an affidavit provided 
annually by an officer of the manufacturer which affirms the following 
information
    (1) During the calendar year immediately preceding the payment and 
during calendar year 2013, the manufacturer used imported pima cotton 
fabric to cut and sew men's and boys' pima cotton shirts in the U.S.;
    (2) During calendar year 2013, the dollar value of imported woven 
pima cotton shirting fabric of 80s or higher count and 2-ply in warp 
purchased and used by the manufacturer to cut and sew men's and boys' 
woven pima cotton shirts in the U.S.;
    (3) The manufacturer continues to maintain invoices and other 
supporting documentation (such as price lists and other technical 
descriptions of the fabric qualities) showing the dollar value of such 
fabric purchased, the date of purchase, and evidencing the fabric as 
woven pima cotton fabric of 80s or higher count and 2-ply in warp; and
    (4) The imported pima cotton fabric purchased in 2013 and in the 
calendar year immediately preceding the payment was suitable for use in 
the manufacturing of men's and boys' cotton shirts.
    (b) Date of purchase. For purposes of the affidavit under paragraph 
(a) of this section, the date of purchase shall be the invoice date, 
and the dollar value shall be determined excluding duty, shipping, and 
insurance.


Sec.  1471.5  Affidavit of pima cotton trade associations.

    In addition to applicable information requirements in Sec.  1471.1, 
trade associations filing a claim for a payment must electronically 
provide a statement which states whether, during the calendar year 
immediately preceding the payment and in calendar year 2014, they were, 
as determined by the Secretary, a domestic nationally recognized 
association established and operating for the promotion of pima cotton 
for domestic use in textile and apparel goods.

Subpart B--Agriculture Wool Trust


Sec.  1471.10  Provisions common to this subpart.

    (a) Agriculture wool trust--(1) Establishment. The Agriculture Wool 
Trust has been established to provide funding for payments under this 
part.
    (2) Purpose. The purpose of the Agriculture Wool Trust is to reduce 
the injury to domestic manufacturers resulting from tariffs on wool 
fabric that are higher than tariffs on certain apparel articles made of 
wool fabric.
    (3) Funding availability. Not more than $30,000,000 will be 
available annually for payments authorized under this part.
    (4) Definitions. As used in this subpart:
    Agriculture Wool Trust means the Agriculture Wool Apparel 
Manufacturers Trust Fund.
    U.S. means the United States of America.
    CCC means the Commodity Credit Corporation.
    FAS means the Foreign Agricultural Service.
    HTS means the Harmonized Tariff Schedule of the United States.
    Secretary means the Secretary of Agriculture.
    TRQ means Tariff Rate Quota.
    (b) Provisions common to this part--(1) Affidavits. FAS shall 
annually, not later than February 15 of the year of the applicable 
payment, make affidavits available on the FAS Web site, which can be 
found at http://www.fas.usda.gov/. Affidavits must be submitted 
electronically to: pimawool@fas.usda.gov.
    (2) Filing deadline. Any person filing an affidavit under this part 
for a

[[Page 12329]]

particular year must file the affidavit for such calendar year, during 
calendar years 2015 through 2019, not later than March 1 of such year.
    (3) Required information. In addition to information required in 
Sec. Sec.  1471.11, 1471.13, and 1471.14, as applicable, every person 
applying for a payment under this part must provide the following 
information applicable to the year for which a payment is sought:
    (i) The current company name, address, contact, phone number of the 
person;
    (ii) The name and address of each plant or location of the person 
in the year immediately preceding the payment; and
    (iii) A W-9 providing the Federal tax identification number of the 
person.
    (4) Standard Form 1199A. Every person seeking a payment must also 
provide Standard Form 1199A, a direct deposit sign-up form, to 
facilitate any transfer of funds.
    (5) Affirmation. A person filing an affidavit under this part must 
affirm that ``all information contained in the application is complete 
and correct and that the information does not contain a false claim, 
statement, or representation.''
    (6) Document retention. All persons receiving a payment under this 
part must maintain all pertinent documentation for three years after 
the year of receipt of the payment.
    (7) False statements. Persons providing false or fraudulent claims 
or making materially false statements or representations are subject to 
civil or criminal penalties pursuant to 18 U.S.C. 1001.
    (8) Confidential information. Specific business information 
provided in affidavits that is marked ``business confidential'' will be 
protected from disclosure to the full extent permitted by law.
    (9) Review of affidavits. Affidavits will be reviewed to determine 
whether they are complete and responsive to the content and form of 
affidavit requirements in this part.
    (10) Finality of determination by the Secretary. A determination by 
the Secretary about a payment under this part shall be final and is not 
subject to appeal or protest.
    (11) Timing of payments. A payment for which a person eligible 
under this part will be disbursed in each of calendar years 2015 
through 2019 not later than April 15 of the applicable year.
    (12) Proration and sequester. Payments covered by this part will be 
subject to proration in the event that insufficient funds exist in the 
Agriculture Wool Trust during the year of the payment, and will be 
subject to sequester, if required by law.
    (13) HTS subheadings. All references to subheadings of the HTS in 
this part are to the subheadings as described in the HTS in 2014.


Sec.  1471.11  Payments to manufacturers of certain worsted wool 
fabrics.

    (a) Definitions. In this section the following definitions apply:
    Eligible person. The term ``eligible person'' means a manufacturer 
in the U.S. of qualifying worsted wool fabric during the calendar year 
immediately preceding the payment and during each of calendar years 
1999, 2000, and 2001.
    Qualifying worsted wool fabric. The term ``qualifying worsted wool 
fabric'' means a worsted wool fabric containing at least 85% by weight 
worsted wool of the kind described in subheading 9902.51.11 or 
9902.51.15 of the 2014 HTS that, during the calendar year immediately 
preceding the payment and during each of calendar years 1999, 2000, and 
2001, was manufactured by an eligible person in the United States.
    (b) Distribution of funds. From amounts in the Agriculture Wool 
Trust, CCC will annually make payments for each of calendar years 2015 
through 2019 to eligible persons that manufactured qualifying worsted 
wool fabric as provided in paragraphs (b)(1) or (2) of this section.
    (1) Payments for production under subheading 9902.51.11 of the 
HTS--(i) In general. Eligible persons that manufactured qualifying 
worsted wool fabric during calendar years 1999, 2000, and 2001 that is 
of the kind described in subheading 9902.51.11 of the HTS are eligible 
for a payment as provided in paragraph (b)(1)(ii) of this section.
    (ii) Payment amounts. A total of $2,666,000 will be allocated 
annually among eligible persons covered by this paragraph on the basis 
of the percentage of each eligible person's total production (actual 
production, not estimates) for the calendar year immediately preceding 
the payment of qualifying worsted wool fabric described in paragraph 
(b)(1)(i) of this section in relation to the total production for the 
calendar year immediately preceding the payment of such fabric by all 
eligible persons who qualify for payments under this paragraph.
    (2) Payments for production under subheading 9902.51.15--(i) In 
general. Eligible persons that manufactured qualifying worsted wool 
fabric during calendar years 1999, 2000, and 2001 that conforms in 
composition to subheading 9902.51.15 of the HTS are eligible for a 
payment as provided in paragraph (b)(2)(ii) of this section.
    (ii) Payment amounts. A total of $2,666,000 will be allocated 
annually among eligible persons covered by this paragraph on the basis 
of the percentage of each eligible person's total production (actual 
production, not estimates) for the calendar year immediately preceding 
the payment of qualifying worsted wool fabric described in paragraph 
(b)(2)(i) of this section in relation to the total production for the 
calendar year immediately preceding the payment of such fabric by all 
eligible persons who qualify for payments under this paragraph.
    (c) Annual affidavit--(1) In general. An eligible person applying 
for a payment under this section shall comply with all applicable 
reporting requirements of this section and of Sec.  1471.10.
    (2) Specific business information. An eligible person shall, for 
the calendar year immediately preceding the payment and for each of 
calendar years 1999, 2000, and 2001, annually report the actual dollar 
value and the actual quantity (linear yards) of qualifying worsted wool 
fabric that was manufactured.
    (3) Manufacturing of wool. When reporting the annual dollar value 
and quantity of imports of qualifying worsted wool fabric, and the 
annual dollar value and quantity of the qualifying wool fabric that was 
manufactured, an eligible person may either have manufactured the 
qualifying worsted wool on its own behalf or had another person 
manufacture the qualifying worsted wool fabric, provided the eligible 
person owned the qualifying worsted wool fabric at the time of 
manufacture.


Sec.  1471.12  [Reserved]


Sec.  1471.13  Monetization of the wool tariff rate quota.

    (a) Definitions. In this section the following definitions apply:
    (1) Lower duty rate. The term ``lower duty rate'' means the duty 
rate as codified in the 2014 HTS that would have been applicable to 
qualifying worsted wool fabric of the kind described in subheadings 
9902.51.11, 9902.51.15, and 9902.51.16 of the 2014 HTS prior to the 
expiration of the Wool TRQ on December 31, 2014.
    (2) Eligible person--(i) In general. The term ``eligible person'' 
means a manufacturer (or a successor-in-interest to the manufacturer) 
in the U.S. during the calendar year immediately preceding the payment 
that:

[[Page 12330]]

    (A) Imported qualifying worsted wool fabric; and
    (B) Used the imported qualifying worsted wool fabric
    (1) In the case of wool of the kind described in subheadings 
9902.51.11 or 9902.51.15 of the 2014 HTS, to produce worsted wool 
suits, suit-type jackets and trousers for men and boys; or
    (2) In the case of wool fabric of the kind described in subheading 
9902.51.16 of the 2014 HTS, used such wool fabric in manufacturing.
    (ii) Successor-in-interest. If a person satisfies the criteria for 
becoming a successor-in-interest to an eligible person under paragraph 
(a)(4) of this section, the person shall succeed to the status of the 
eligible person and become eligible for the payment.
    (3) Qualifying worsted wool fabric. The term ``qualifying worsted 
wool fabric'' means imported worsted wool fabric containing at least 
85% by weight worsted wool of the kind described in subheadings 
9902.51.11, 9902.51.15, or 9902.51.16 of the 2014 HTS that, during the 
calendar year immediately preceding the payment was:
    (i) Imported by an eligible person in the U.S.; and
    (ii) Used by the eligible person in the U.S.
    (A) In the case of wool fabric of the kind described in subheadings 
9902.51.11 or 9902.51.15 of the HTS, to produce worsted wool suits, 
suit-type jackets and trousers for men and boys; or
    (B) In the case of wool fabric of the kind described in subheading 
9902.51.16 of the HTS, was used in manufacturing.
    (4) Successor-in-interest. The term ``successor-in-interest'' means 
a person that is eligible to claim a payment under this section as if 
the person were the original eligible person, without regard to section 
3727, title 31, United States Code because of--
    (i) An assignment of the claim;
    (ii) An assignment of the original eligible person's right to 
manufacture under the same trade name; or
    (iii) A reorganization of the eligible person.
    (b) Purposes. The purposes of a TRQ monetization payment are to 
provide an eligible person--
    (1) Compensation for termination of the TRQ for qualifying worsted 
wool fabric; and
    (2) A payment that is equivalent to the amount the eligible person 
would have saved during the calendar year for imports of qualifying 
worsted wool fabric if the lower duty rate under the applicable 2014 
HTS subheading(s) of a qualifying worsted wool fabric were in effect.
    (c) Calculation of monetized TRQ payment. A payment will be 
established by calculating, as provided in paragraphs (c)(1) through 
(4) of this section, the savings that would have been realized by the 
eligible person for imports of qualifying worsted wool fabric of the 
kind described in one of the three subheadings 9902.51.11, 9902.51.15, 
or 9902.51.16 of the 2014 HTS (as applicable), had the lower duty rate 
been in effect.
    (1) Payment formula. Except as provided in paragraph (c)(2) of this 
section, a payment shall be calculated by
    (i) Establishing the reported dollar value of imported worsted wool 
fabric, for each of the 2014 HTS subheadings of worsted wool fabric, 
during the calendar year immediately preceding the payment;
    (ii) Subtracting the duty rate (converted to numeric value) for 
each applicable 2014 HTS subheading of worsted wool fabric that would 
have been paid in calendar year 2014 from the duty rate (converted to 
numeric value) that was actually paid in the calendar year immediately 
preceding the payment;
    (iii) For each applicable 2014 HTS subheading of worsted wool 
fabric, multiplying the numeric values described in paragraphs 
(c)(1)(i) and (ii) of this section; and
    (iv) Adding each product obtained in paragraph (c)(1)(iii) of this 
section.
    (2) Exception for 2015 payment. In the case of the payment to be 
made in 2015, for purposes of the calculation component described in 
paragraph (c)(1)(ii) of this section the duty rate applicable in 2015 
shall be deemed the duty rate actually paid in 2014. The reason for 
this exception for the 2015 payment is that 2014 is both the last year 
in which the lower duty rate was still in effect, and is also the 
calendar year immediately preceding the payment (the payment is in 
2015). As a result, for the 2015 payment, a proxy is necessary for the 
higher duty rate in the calendar year immediately preceding the 
payment.
    (3) 2015 payment. A payment in 2015 shall be calculated by
    (i) Establishing the reported dollar value of imported worsted wool 
fabric during the calendar year immediately preceding the payment under 
the 2014 HTS subheading of worsted wool fabric;
    (ii) Subtracting the lower duty rate (converted to numeric value) 
that would have been applicable to the 2014 HTS subheading of worsted 
wool fabric from the duty rate applicable to that HTS subheading in 
2015 (converted to numeric value);
    (iii) Multiplying the numeric values described in paragraphs 
(c)(3)(i) and (ii) of this section); and(iv) Adding the product 
obtained in paragraph (c)(3)(iii) of this section to the product 
obtained for every applicable subheading of worsted wool fabric.
    (4) 2016-2019 payments. A payment in each of years 2016-2019 shall 
be calculated by
    (i) Establishing the reported dollar value of imported worsted wool 
fabric during the calendar year immediately preceding the payment under 
the 2014 HTS subheading of worsted wool fabric;
    (ii) Subtracting the lower duty rate (converted to numeric value) 
that would have been applicable to the 2014 HTS subheading of worsted 
wool fabric from the duty rate applicable to the calendar year 
preceding the payment (converted to numeric value);
    (iii) Multiplying the numeric values described in paragraphs 
(c)(4)(i) and (ii) of this section; and
    (iv) Adding the product obtained in paragraph (c)(3)(iii) of this 
section to the product obtained for every applicable subheading of 
worsted wool fabric.
    (d) Annual affidavit--(1) In general. An eligible person applying 
for a payment under this section shall comply with all applicable 
reporting requirements of this section and of Sec.  1471.10.
    (2) Specific business information--(i) Imports and production.--An 
eligible person shall, for the entire calendar year immediately 
preceding the payment, report the actual dollar value and the actual 
quantity of
    (A) Imports into the U.S. of qualifying worsted wool fabric (square 
meters); and
    (B) The qualifying worsted wool fabric used by the eligible person 
in the U.S.
    (1) In the case of wool of the kind described in subheadings 
9902.51.11 or 9902.51.15 of the 2014 HTS, to produce worsted wool 
suits, suit-type jackets and trousers for men and boys (units); or
    (2) In the case of wool of the kind described in subheading 
9902.51.16 of the 2014 HTS, such wool that was manufactured (square 
meters).
    (ii) Direct and indirect importers--(A) In general. Eligible 
persons that import qualifying worsted wool fabric through a third 
party broker are considered to be indirect importers of the qualifying 
worsted wool fabric. Persons that directly import qualifying worsted 
wool fabric and pay the import duty for such wool are considered to be 
direct importers of the qualifying worsted wool fabric.
    (B) Reported dollar value. Eligible persons must state in their 
annual affidavit whether, in the calendar year

[[Page 12331]]

immediately preceding the payment, they were direct or indirect 
importers, and the dollar value of the imported qualifying worsted wool 
fabric. The reported dollar value of such imports by indirect importers 
will be subject to a 10% reduction.
    (C) Affirmation. An eligible person shall annually affirm in the 
affidavit that, in the calendar year immediately preceding the payment, 
in the U.S., the eligible person:
    (1) Directly or indirectly imported the qualifying worsted wool 
fabric into the U.S.;
    (2) Used that fabric to produce in the U.S. worsted wool suits, 
suit jackets, and trousers for men and boys (or, in the case of 
qualifying worsted wool fabric of the kind described in the 2014 HTS 
subheading 9902.51.16, for manufactured in the U.S.); and
    (3) Imported qualifying worsted wool fabric from the country of 
origin identified in the affidavit.
    (iii) Import documentation--(A) Direct imports. Applicable to the 
calendar year immediately preceding payment, an eligible person that 
directly imported qualifying worsted wool fabric is required to submit 
to FAS as part of the affidavit package scanned copies of CBP Form 7501 
``Entry Summary'' for the relevant calculations made in the affidavit.
    (B) Indirect imports. Applicable to the calendar year immediately 
preceding payment, an eligible person that indirectly imported 
qualifying worsted wool fabric is required to submit to FAS as part of 
the affidavit package invoices from third party brokers as required in 
the affidavit.
    (3) Production of garments or manufacturing of qualifying worsted 
wool fabric--(i) Production of garments--(A) In general. When reporting 
the annual dollar value and quantity of imported qualifying worsted 
wool fabric, and the annual dollar value and quantity of the qualifying 
worsted wool fabric that was cut and sewn, an eligible person may 
either have cut and sewn the wool on its own behalf or had another 
person cut and sew the wool on behalf of the eligible person, provided 
the eligible person owned the wool at the time it was cut and sewn.
    (B) Applicability. This paragraph applies to wool of the kind 
described in subheadings 9902.51.11 and 9902.51.15 of the 2014 HTS.
    (ii) Manufacturing of qualifying worsted wool fabric--(A) In 
general. When reporting the annual dollar value and quantity of 
imported qualifying worsted wool fabric, and the annual dollar value 
and quantity of the qualifying worsted wool fabric that was 
manufactured, an eligible person may either have manufactured the wool 
on its own behalf or had another person manufacture the wool, provided 
the eligible person owned the wool at the time of manufacture.
    (B) Applicability. This paragraph applies to wool of the kind 
described in subheading 9902.51.16 of the 2014 HTS.


Sec.  1471.14  Wool yarn, wool fiber, and wool top duty compensation 
payment.

    (a) Definitions. In this section the following definitions apply:
    (1) Duty. The term ``duty'' means the duty rate codified in the HTS 
for a year that is applicable to qualifying wool of the kind described 
in subheadings 9902.51.13 and 9902.51.14 of the 2014 HTS.
    (2) Eligible person--(i) In general. The term ``eligible person'' 
means a manufacturer (or a successor-in-interest to the manufacturer) 
in the U.S. during the calendar year immediately preceding the payment; 
that
    (A) Imported qualifying wool; and
    (B) Manufactured the qualifying wool.
    (ii) Successor-in-interest. If a person satisfies the criteria for 
becoming a successor-in-interest to an eligible person under paragraph 
(a)(4) of this section, the person shall succeed to the status of the 
eligible person and become eligible for the payment.
    (3) Qualifying wool. The term ``qualifying wool'' means imported 
wool yarn of the kind described in subheading 9902.51.13 of the 2014 
HTS, and imported wool fiber or wool top of the kind described in 
subheading 9902.51.14 of the 2014 HTS, that, during the calendar year 
immediately preceding the payment was
    (i) Imported, directly or indirectly, by an eligible person (or a 
successor-in-interest) into the U.S.; and
    (ii) Manufactured by the eligible person in the U.S.
    (4) Successor-in-interest. The term ``successor-in-interest'' means 
a person that is eligible to claim a payment under this section as if 
the person were the original eligible manufacturer, without regard to 
section 3727, title 31, U.S. Code because of
    (i) An assignment of the claim;
    (ii) An assignment of the eligible person's right to manufacture 
under the same trade name; or
    (iii) A reorganization of the eligible person.
    (b) Import duties. The duties on imports of qualifying wool were 
suspended in their entirety in section 503 of the Trade and Development 
Act of 2000. The suspension of the duties for both HTS subheadings of 
qualifying wool was extended through December 31, 2014. These duties 
were reinstated as of January 1, 2015.
    (c) Duty compensation payment--(1) Calculation of payment. For each 
of the 2015-2019 calendar years the duty compensation payment of an 
eligible person will be established by calculating, as provided in 
paragraphs (c)(2) through (5) of this section, the savings that would 
have been realized by the eligible person for imports of qualifying 
wool had the duty suspension been in effect.
    (2) Savings for each subheading. The savings realized by an 
eligible person for imports of qualifying wool under a HTS subheading 
covered by this section shall be obtained by multiplying
    (i) The reported dollar value of imports under a HTS subheading 
during the calendar year immediately preceding the payment; and
    (ii) Except as provided in paragraph (c)(5) of this section, the 
duty applicable to that HTS subheading in the calendar year preceding 
the payment, converted to numeric value.
    (3) Sum of subheading savings. The product obtained in paragraph 
(c)(2) of this section for imports of qualifying wool previously 
described under each HTS subheading shall be added to the savings 
obtained for imports under the other HTS subheading (as applicable).
    (4) Duty compensation payment amount. The sum obtained in paragraph 
(c)(3) of this section shall equal the annual duty compensation payment 
for the eligible person for the applicable calendar year.
    (5) Exception for 2015 payment. In the case of the 2015 payment, 
for purposes of the calculation component described in paragraph (c)(2) 
of this section the duty rate applicable in 2015 shall be deemed the 
duty rate actually paid in 2014. The reason for this exception for the 
2015 payment is that 2014 is both the last year in which the duty 
suspension was still in effect, and is also the calendar year 
immediately preceding the payment (the payment is in 2015). As a 
result, for the 2015 payment, a proxy is necessary for the higher duty 
rate in the calendar year immediately preceding the payment.
    (d) Annual affidavit required--(1) In general. An eligible person 
applying for a payment under this section shall comply with all 
applicable reporting requirements described in this section and Sec.  
1471.10.
    (2) Specific business information--(i) Imports and production. An 
eligible person shall, for the calendar year immediately preceding the 
payment, report the actual dollar value and the actual quantity of:

[[Page 12332]]

    (A) Imports into the U.S. of qualifying wool by the eligible 
person; and
    (B) Such qualifying wool that was manufactured in the U.S. by the 
eligible person.
    (ii) Direct and indirect importers--(A) In general. Eligible 
persons that import qualifying wool through a third party broker are 
considered to be indirect importers of the qualifying wool. Persons 
that directly import qualifying wool and pay the import duty for such 
wool are considered to be direct importers of the qualifying wool.
    (B) Reported dollar value. Eligible persons must state in their 
annual affidavit whether, in the calendar year immediately preceding 
the payment, they were direct or indirect importers, and the dollar 
value of the imported qualifying wool. The reported dollar value of 
imports by indirect importers will be subject to a 10% reduction.
    (C) Affirmation. An eligible person shall annually affirm in the 
affidavit that, in the calendar year immediately preceding the payment, 
the eligible person
    (1) Directly or indirectly imported the qualifying wool into the 
U.S.;
    (2) Manufactured the qualifying wool in the U.S.; and
    (3) Imported qualifying wool from the country of origin identified 
in the affidavit.
    (iii) Import documentation--(A) Direct imports. Applicable to the 
calendar year immediately preceding the payment, an eligible person 
that directly imported qualifying wool is required to submit to FAS as 
part of the affidavit package scanned copies of CBP Form 7501 ``Entry 
Summary'' for the relevant calculations made in the affidavit.
    (B) Indirect imports. Applicable to the calendar year immediately 
preceding the payment, an eligible person that indirectly imported 
qualifying wool is required to submit to FAS as part of the affidavit 
package invoices from third party brokers for the relevant calculations 
made in the affidavit.
    (3) Manufacture of qualifying wool. When reporting the annual 
dollar value and quantity of imported qualifying wool, and the annual 
dollar value and quantity of the qualifying wool that was manufactured, 
an eligible person may either have manufactured the qualifying wool on 
its own behalf or had another person manufacture the qualifying wool, 
provided the eligible person owned the qualifying wool at the time of 
manufacture.

    Dated: February 25, 2015.
Phil C. Karsting,
Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
[FR Doc. 2015-04385 Filed 3-6-15; 8:45 am]
 BILLING CODE 3410-10-P



                                                                                                                                                                                           12321

                                             Rules and Regulations                                                                                         Federal Register
                                                                                                                                                           Vol. 80, No. 45

                                                                                                                                                           Monday, March 9, 2015



                                             This section of the FEDERAL REGISTER                    Monetization of the Wool TRQ will be                  Pima Agriculture Cotton Trust Fund and
                                             contains regulatory documents having general            administered by the Secretary for the                 the Agriculture Wool Apparel
                                             applicability and legal effect, most of which           2015–2019 calendar years. The third                   Manufacturers Trust Fund.
                                             are keyed to and codified in the Code of                payment is called the Wool Yarn, Wool
                                             Federal Regulations, which is published under                                                                 Subpart A. Pima Agriculture Cotton
                                                                                                     Fiber, and Wool Top Duty
                                             50 titles pursuant to 44 U.S.C. 1510.                                                                         Trust Fund (Agriculture Pima Trust)
                                                                                                     Compensation Payment. Payments are
                                             The Code of Federal Regulations is sold by              made to processors of wool yarn, wool                   The Agriculture Pima Trust was
                                             the Superintendent of Documents. Prices of              fiber, and wool top to compensate them                established in section 12314 of the Farm
                                             new books are listed in the first FEDERAL               for termination of the suspension of                  Bill. The Agriculture Pima Trust is a
                                             REGISTER issue of each week.                            import duties on such wool. This                      funding mechanism for pima cotton
                                                                                                     payment will be administered by the                   payments.
                                                                                                     Secretary for the 2015–2019 calendar                  (1) Pima Cotton Payments
                                             DEPARTMENT OF AGRICULTURE                               years. The fourth payment is called the
                                                                                                     Refund of Duties Paid on Imports of                     The Secretary is required in section
                                             Commodity Credit Corporation                            Certain Wool Products. This program is                12314 of the Farm Bill to establish an
                                                                                                     currently administered by the                         annual payment for domestic users of
                                             7 CFR Part 1471                                         Department of Homeland Security’s                     pima cotton, pima cotton yarn spinners,
                                                                                                     Customs and Border Protection (CBP)                   and pima cotton trade associations. The
                                             RIN 0551–AA86
                                                                                                     through calendar year 2015. The                       Foreign Agricultural Service (FAS) has
                                             Pima Agriculture Cotton Trust Fund                      program will be transferred in calendar               been delegated the authority to
                                             and Agriculture Wool Apparel                            year 2016 to the Secretary, who will                  administer this payment and to issue
                                             Manufacturers Trust Fund                                administer the program for the 2016–                  regulations to carry it out for calendar
                                                                                                     2019 calendar years. Regulations for the              years 2014–2018. There was insufficient
                                             AGENCY:  Foreign Agricultural Service                                                                         time to publish regulations for the 2014
                                                                                                     fourth payment will be published at a
                                             and Commodity Credit Corporation                                                                              payment and a notice was published in
                                                                                                     later date.
                                             (CCC), USDA.                                                                                                  the Federal Register at 72 FR 29363 on
                                                                                                     DATES: This final rule is effective March
                                             ACTION: Final rule with request for                                                                           May 2, 2014. Subpart A is applicable to
                                                                                                     9, 2015. Comments concerning this final
                                             comments.                                                                                                     annual payments in the 2015–2018
                                                                                                     rule must be received by April 8, 2015,
                                                                                                                                                           calendar years.
                                             SUMMARY:    This final rule implements                  to be assured consideration. We are                     The purpose of the annual payment is
                                             the Pima Agriculture Cotton Trust Fund                  issuing this final rule without prior                 to provide monetary relief to certain
                                             (Agriculture Pima Trust) and the                        notice and opportunity for comment.                   persons in the U.S. that have incurred
                                             Agriculture Wool Apparel                                ADDRESSES: The Foreign Agricultural                   economic injury through the
                                             Manufacturers Trust Fund (Agriculture                   Service (FAS), USDA, invites interested               importation of pima cotton and have
                                             Wool Trust) Fund established in the                     persons to submit comments on this                    incurred tariffs on pima cotton fabric
                                             Agricultural Act of 2014 (Farm Bill).                   final rule. Comments may be submitted                 that are higher than tariffs on certain
                                             The Agriculture Pima Trust provides                     by one of the following methods:                      imported apparel articles made of pima
                                             annually for one payment, called the                       • Federal e-Rulemaking Portal: Go to               cotton fabric. The first Pima Cotton
                                             Pima Cotton Payments. The Agriculture                   http://www.regulations.gov. Preferred                 Trust Fund was established under the
                                             Wool Trust provides annually for four                   method; follow the on-line instructions               Tax Relief and Health Care Act of 2006
                                             payments. The first payment under the                   for submitting comments on the final                  and administered by the Customs and
                                             Agriculture Wool Trust is currently                     rule.                                                 Border Protection Agency of the
                                             administered by the Department of                          • Email: Comments can also be
                                                                                                                                                           Department of Homeland Security (CBP)
                                             Commerce’s Office of Textiles and                       addressed to Mr. Benjamin Chan at
                                                                                                                                                           in 2007 and 2008. Section 12314 of the
                                             Apparel (OTEXA), and is called the                      pimawool@fas.usda.gov. All comments
                                                                                                                                                           Farm Bill authorized the Agriculture
                                             Grants to Manufacturers of Certain                      submitted in response to this rule will
                                                                                                                                                           Pima Trust and pima cotton payment for
                                             Worsted Wool Fabrics. This program is                   be included in the record and will be
                                                                                                                                                           the 2014–2018 calendar years. The Farm
                                             being transferred from OTEXA to the                     made available to the public. FAS will
                                                                                                                                                           Bill authorizes $16 million from the
                                             Secretary of Agriculture (Secretary),                   make the comments publicly available
                                                                                                                                                           Commodity Credit Corporation (CCC)
                                             who will administer the payment for the                 online at: http://www.regulations.gov.
                                                                                                                                                           for each calendar year to fund annual
                                             2015–2019 calendar years, and will be                   FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                           payments.
                                             called Payments to Manufacturers of                     Benjamin Chan, Import Policies and                      Section 12314 requires that a specific
                                             Certain Worsted Wool Fabrics. The                       Export Reporting Division, Office of                  percentage of annual funding be
                                             second payment is called Monetization                   Trade Policy, Foreign Agricultural                    distributed to certain sectors of the
                                             of the Wool TRQ. The Farm Bill requires                 Service, U.S. Department of Agriculture;              domestic pima cotton apparel industry.
                                             the Secretary to determine a monetary                   email: pimawool@fas.usda.gov; 202–                    Twenty-five percent is to be paid to one
                                             amount equivalent to what a person                      720–8877.
rmajette on DSK2TPTVN1PROD with RULES




                                                                                                                                                           or more nationally recognized
                                             would have saved if OTEXA’s Wool                        SUPPLEMENTARY INFORMATION:                            associations established for the
                                             Tariff Rate Quota program (Wool TRQ)                    Background                                            promotion of pima cotton for use in
                                             were still in effect. This payment will be                                                                    textile and apparel goods.
                                             based on OTEXA’s Wool Tariff Rate                       Purpose of the Regulatory Action                        Twenty-five percent is to be paid to
                                             Quota program, which terminated at the                    This rule sets forth regulations                    domestic yarn spinners of pima cotton
                                             end of calendar year 2014. The                          regarding the implementation of the                   that, during the calendar year


                                        VerDate Sep<11>2014   14:17 Mar 06, 2015   Jkt 235001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\09MRR1.SGM   09MRR1


                                             12322               Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations

                                             immediately preceding the payment and                   (1) Payments to Manufacturers of                      in making suits, suit-type jackets, or
                                             during calendar year 2013, produced                     Certain Worsted Wool Fabrics                          trousers for men and boys. The TRQ has
                                             ring spun cotton yarns in the United                       OTEXA has administered the Grants                  been administered since 2004 by
                                             States measuring less than 83.33 decitex                to Manufacturers of Certain Worsted                   OTEXA, and the authority for the TRQ
                                             (exceeding 120 metric number), in                       Wool Fabrics program through calendar                 expired on December 31, 2014.
                                             single and plied form. A payment to a                                                                            This worsted wool fabric is of the
                                                                                                     2014. Section 4002(c)(6) of the
                                             yarn spinner is based on the ratio of the                                                                     kind described in subheading
                                                                                                     Miscellaneous Trade and Technical
                                             yarn spinner’s 2013 production to the                                                                         9902.51.11 of the HTS with average
                                                                                                     Corrections Act of 2004, as amended,
                                             total production of all domestic yarn                                                                         fiber diameters greater than 18.5
                                                                                                     authorizes OTEXA to administer this
                                             spinners in 2013 who qualify for a                                                                            microns, and subheading 9902.51.15 of
                                                                                                     payment through 2014. Section                         the HTS with average fiber diameters of
                                             payment.                                                12315(b)(1) of the Farm Bill directed the
                                                The remaining fifty percent is to be                                                                       18.5 microns or less. A third worsted
                                                                                                     Secretary to continue to administer this              wool fabric HTS subheading was added
                                             paid to manufacturers that during both                  payment for the 2015–2019 calendar
                                             the calendar year immediately                                                                                 to the TRQ by the Miscellaneous Trade
                                                                                                     years. The title is changed to ‘‘Payments             Act of 2004, subheading 9902.51.16 of
                                             preceding the payment and during the                    to Manufacturers of Certain Worsted
                                             2013 calendar year used imported pima                                                                         the HTS, with average fiber diameters of
                                                                                                     Wool Fabrics’’ to avoid confusion with                18.5 microns or less.
                                             cotton fabric (80s or higher count and 2-               competitive grant programs also
                                             ply in warp) to manufacture men’s and                                                                            All references to subheadings of the
                                                                                                     administered by the Secretary.                        HTS in the context of this payment are
                                             boys’ woven pima cotton shirts. A                          The purpose of this payment is to
                                             payment to a manufacturer is based on                                                                         to the subheadings as described in the
                                                                                                     provide financial assistance to persons               2014 HTS. The subheading references
                                             the ratio of the dollar value (excluding                in the U.S. that manufactured worsted
                                             duty, shipping, and insurance) of the                                                                         are to a past HTS because these
                                                                                                     wool fabrics during 1999, 2000, and                   subheadings have expired and have
                                             manufacturer’s 2013 production of                       2001. Section 12315 of the Farm Bill                  been subsumed under other HTS
                                             men’s and boys’ woven pima cotton                       authorizes the Secretary to continue to               headings in 2015. Congress also used
                                             shirts to the dollar value (excluding                   make these payments to the same                       these now expired HTS subheadings in
                                             duty, shipping, and insurance) of the                   persons that, during the calendar year                the Farm Bill, further necessitating their
                                             total production in 2013 of all men’s                   immediately preceding the payment and                 use here. The term ‘‘duty paid’’ means
                                             and boys’ woven pima cotton shirts by                   during calendar years 1999, 2000, and                 the dollar amount of the duty actually
                                             manufacturers who qualify for a                         2001, were manufacturers of at least one              paid by an importer in the calendar year
                                             payment. The Farm Bill explicitly                       of two kinds of worsted wool fabrics: (1)             immediately preceding the payment. In
                                             requires exclusion of ‘‘duty, shipping,                 Subheading 9902.51.11 of the                          other words, duty paid equals the
                                             and related costs’’ from the reported                   Harmonized Tariff Schedule of the                     applicable duty rate multiplied by the
                                             dollar value of imported woven cotton                   United States (HTS) containing 85                     quantity of worsted wool fabric
                                             shirting fabric. Of the costs ‘‘related’’ to            percent or more by weight of wool, with               imported. The term ‘‘lower duty rate’’
                                             shipping that are separate from the                     average fiber diameters greater than 18.5             means the rate of duty that would have
                                             freight cost itself, insurance is generally             microns; and (2) subheading 9902.51.15                been applied under the 2014 HTS
                                             the largest. As payments to                             of the HTS containing 85 percent or                   because of the duty reduction
                                             manufacturers are based on a                            more by weight of wool, with average                  percentage required by the Wool TRQ
                                             production ratio incorporating the                      fiber diameters of 18.5 microns or less.              that ended on December 31, 2014.
                                             intrinsic dollar value of the imported                     All references to subheadings of the                  On February 7, 2014, Congress created
                                             fabric, excluding ‘‘duty, shipping, and                 HTS in the context of this payment are                in section 12315(e) of the Farm Bill a
                                             related costs’’ in both parts of the ratio,             to the subheadings as described in the                new payment that ‘‘monetizes’’
                                             to limit ‘‘related costs’’ to insurance                 HTS in 2014.                                          OTEXA’s Wool TRQ. Because the lower
                                             gives effect to the purpose of the statute                 As specified by the Miscellaneous                  duty rate is no longer available to
                                             and affords simplicity of calculation.                  Trade and Technical Corrections Act of                importers after December 31, 2014,
                                                To apply for a payment, claimants are                2004, an amount of $2.666 million is                  when authority for the TRQ expired,
                                             required to submit an affidavit by March                available each year for each HTS                      Congress decided to monetarily
                                             15 of the calendar year of the                          subheading of wool fabric, to be divided              compensate importers of worsted wool
                                             application for a payment. Payments                     between persons based on the                          fabric of the kind covered by the three
                                             will be made not later than April 14.                   percentage of each person’s total actual              HTS subheadings for the additional cost
                                                Persons applying for a payment must                  manufacturing of that type of worsted                 of the increased tariff. Congress
                                             provide information required by the                     wool fabric during each of calendar                   accomplished this in section 12315(e)
                                             Secretary through annual affidavits.                    years 1999, 2000, and 2001 in relation                by requiring that in the event that the
                                                                                                     to the total manufacturing of such fabric             Wool TRQ administered by OTEXA
                                             Subpart B. Agriculture Wool Apparel
                                                                                                     by all persons who qualified for                      should expire during the administration
                                             Manufacturers Trust Fund (Agriculture
                                                                                                     payments in those years.                              of the Agriculture Wool Trust by the
                                             Wool Trust)
                                                                                                        Persons applying for a payment must                Secretary (through 2019), the Secretary
                                               The Agriculture Wool Trust was                        provide information required by the                   shall determine an amount ‘‘. . . that is
                                             established in section 12315 of the Farm                Secretary through annual affidavits.                  equal to the amount the manufacturer or
                                             Bill. The Agriculture Wool Trust is a                                                                         successor-in-interest would have saved
                                             funding mechanism for four payments:                    (2) Monetization of the Wool Tariff Rate
                                                                                                                                                           during the calendar year of the payment
                                             (1) Payments to Manufacturers of                        Quota (TRQ)
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                                                                                                                                                           if the suspension [or reduction] of duty
                                             Certain Worsted Wool Fabrics; (2)                         The Wool TRQ was established in                     on wool fabrics were in effect.’’ The
                                             Monetization of the Wool Tariff Rate                    Title V of the Trade and Development                  Secretary has delegated this function to
                                             Quota; (3) Wool Yarn, Wool Fiber, and                   Act of 2000, and provided for temporary               FAS at 7 CFR 2.43.
                                             Wool Top Duty Compensation Payment;                     duty reductions—i.e., lower duty rates—                  Section 12315(e) provides that only
                                             and (4) Refund of Duties Paid on                        on limited quantities of two categories               the person (or a successor-in-interest to
                                             Imports of Certain Wool Products.                       of worsted wool fabrics suitable for use              the person) that imported worsted wool


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                                                                 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations                                           12323

                                             fabric involving one or more of the three               been paid on the same quantity of                     preceding the payment (2014) will still
                                             HTS subheadings covered by this                         worsted wool fabric if the lower duty                 be used to establish that production or
                                             payment is eligible for the payment. To                 rate had applied. This allows the                     processing by the eligible person
                                             be eligible for a payment, the person                   payment to address the ‘‘savings’’                    occurred (which is an eligibility
                                             must also have used the imported                        contemplated in 12315(e) of the Farm                  requirement).
                                             worsted wool fabric to produce in the                   Bill as close to the real time experience                There were three essential data
                                             U.S. suits, suit-type jackets, or trousers              of the person as is administratively                  components of the wool TRQ that
                                             for men and boys (or, in the case of                    possible. For example, a person’s import              terminated at the end of the 2014
                                             imported wool of the kind described in                  of worsted wool fabric in calendar year               calendar year: (1) The quantity of
                                             HTS subheading 9902.51.16, must have                    2016 will be the basis for calculating the            imported wool fabric subject to the
                                             manufactured the wool fabric) during                    person’s payment in 2017. This is                     lower duty rate; (2) the price of the
                                             the calendar year immediately                           consistent with the statute’s focus on                imported wool fabric; and (3) the
                                             preceding the payment.                                  the savings that would have been                      person’s actual production of worsted
                                                The worsted wool fabric covered by                   realized if a TRQ were still in effect, and           wool suits, suit-type jackets, or trousers
                                             the three HTS subheadings under this                    is also consistent with OTEXA                         for men and boys (or, in the case of wool
                                             payment are either imported directly by                 previously basing a TRQ allocation on a               under HTS subheading 9902.51.16,
                                             persons (i.e., importing manufacturer),                 period of time immediately prior to the               manufactured the wool fabric). This
                                             in which case the person directly                       allocation.                                           information has been annually collected
                                             purchased the imported worsted wool                        The payment will be made to eligible               by OTEXA by means of affidavits
                                             fabric and paid the duty, or imported                   persons by April 15 of the calendar year              supplied by persons applying for a
                                             indirectly (i.e., non-importing                         subsequent to the year of the person’s                payment. The Secretary will continue to
                                             manufacturer) through a third party                     reported wool fabric imports. This                    collect this information through annual
                                             broker that had directly paid the duty.                 allows the Secretary to base the                      affidavits to ensure that the person,
                                             The payment applies to persons that                     payment on the person’s total actual                  during the calendar year immediately
                                             either directly or indirectly imported                  imports of wool fabric during the                     preceding the payment, (1) imported,
                                             worsted wool fabric.                                    calendar year immediately preceding                   either directly or indirectly, the quantity
                                                The calendar year immediately                        the payment.                                          of worsted wool fabric of the kind
                                             preceding the payment is the time                          The savings involves three factors                 described under one or more of the HTS
                                             period that will be used to establish the               spread over two time periods: (1) The                 subheadings covered by this payment,
                                             basis for calculating a payment. This                   duty paid at the higher duty rate                     and (2) produced in the U.S. suits, suit-
                                             historical basis applies to the duty paid               applicable to the worsted wool fabric                 type jackets, or trousers for men and
                                             and to the production or processing by                  described in the applicable 2014 HTS                  boys (or, in the case of wool under HTS
                                             the person applying for a payment. The                  subheadings in the calendar year                      subheading 9902.51.16, manufactured
                                             duty paid arises from application of the                immediately preceding the payment; (2)                the wool fabric).
                                             duty rate applicable to imports of one or               the production or further processing of                  The dollar value and quantity of such
                                             more of the three worsted wool fabrics                  the imported worsted wool fabric in the               imports are also factors in determining
                                             of the kind described in the three                      calendar year immediately preceding                   the savings that would have been
                                             subheadings covered by the payment.                     the payment; and (3) the duty paid at                 realized because of the TRQ. Dollar
                                             To be eligible for a payment, during the                the lower duty rate applicable to that                value data effectively captures the price
                                             calendar year immediately preceding                     HTS subheading of worsted wool fabric                 of such fabric and the dollar amount
                                             the payment a person must have                          in 2014, the last year the TRQ was                    paid by the person. OTEXA has
                                             imported, directly or indirectly, one or                effective. The higher value of duty paid              collected data about the dollar value
                                             more of these HTS subheadings of                        in the calendar year immediately                      and quantity of such imports by
                                             worsted wool fabric, and used such                      preceding the payment is used to                      requiring the person to report the dollar
                                             worsted wool fabric in the U.S. to make                 calculate the 2016–2019 payments.                     value and quantity of the imports during
                                             men’s and boy’s suits, suit-type jackets,               However, for the 2015 payment, the                    the first six months of the calendar year
                                             or trousers (or, in the case of subheading              higher duty rate in the 2015 HTS will                 of the license allocation. The Secretary
                                             9902.51.16, manufactured such worsted                   be used instead of the duty rate                      will continue to collect the person’s
                                             wool fabric).                                           applicable in the calendar year                       reported dollar value and quantity of
                                                Section 12315(e) of the Farm Bill                    immediately preceding the payment,                    imports of worsted wool fabric, but will
                                             anticipates a time when the TRQ’s lower                 which would be 2014. The reason for                   require information about imports for
                                             duty rate is no longer in effect,                       this exception for the 2015 payment is                the entire calendar year immediately
                                             acknowledges that duty rates will have                  that 2014 is both the last year in which              preceding the payment. The savings in
                                             increased upon expiration of the TRQ,                   the TRQ’s lower duty rate was still in                the context of the payment can be
                                             and focuses on the savings that an                      effect, and is also the calendar year                 restated accordingly. In any calendar
                                             importer (direct or indirect) of worsted                immediately preceding the payment                     year in which the lower duty rate on
                                             wool fabric would have realized had the                 (2015). As a result, for the 2015                     worsted wool fabric of the kind
                                             lower duty rate remained in effect.                     payment, a proxy is necessary to serve                described in subheadings 9902.51.11,
                                             Section 12315(e) states that the savings                as the higher duty rate in the calendar               9902.51.15, and 9902.51.16 of the 2014
                                             is ‘‘. . . an amount . . . equal to the                 year immediately preceding the                        HTS is not in effect, a person (or a
                                             amount the manufacturer or successor-                   payment. It is necessary to create such               successor-in-interest of the person) that,
                                             in-interest would have saved during the                 a proxy and generate a 2015 payment,                  during the calendar year immediately
                                             calendar year . . . if the suspension [or
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                                                                                                     because the statute requires that this                preceding the payment, in the U.S., (1)
                                             reduction] of duty on wool fabrics were                 payment be made in any year in which                  directly or indirectly imported worsted
                                             in effect.’’ The focus of the savings is on             the wool TRQ is not in effect. The first              wool fabric of the kind described under
                                             the difference between the duty paid for                year the TRQ is not in effect is calendar             one or more of the three HTS
                                             the worsted wool fabric in the calendar                 year 2015. Notwithstanding this proxy                 subheadings covered by this payment,
                                             year immediately preceding the                          for the higher duty rate for a 2015                   and (2) used the worsted wool fabric to
                                             payment, and the duty that would have                   payment, the calendar year immediately                produce suits, suit-type jackets, or


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                                             12324               Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations

                                             trousers for men and boys (or, in the                      The payment will be annually                          The second example applies to a
                                             case of worsted wool fabric covered by                  calculated for each of the 2015–2019                  payment in 2015 using the ‘‘2015
                                             subheading 9902.51.16, manufactured                     calendar years as follows. For each HTS               proxy’’ discussed above. Recall that
                                             the worsted wool fabric), is eligible for               subheading, the savings of the person                 under the applicable TRQ that expired
                                             a payment that is equivalent to the                     for any given calendar year will be the               on December 31, 2014, worsted wool
                                             difference between the higher duty paid                 difference between the higher duties                  fabrics entering the United States under
                                             on such worsted wool fabric in the                      paid in the calendar year preceding the               HTS subheadings 9902.51.15 and
                                             calendar year immediately preceding                     payment and the duties that would have                9902.51.16 were assessed zero duty, and
                                             the payment and the reduced duty that                   been payable at the lower 2014 duty                   worsted wool fabrics from Oman
                                             would have been payable under the                       rate. The savings for each of the three               entering under 9902.51.11 were
                                             TRQ (in 2014) on the quantity of                        subheadings will then be added                        assessed a 10% duty. Starting on
                                             worsted wool fabric imported in the                     together, the sum of which will equal                 January 1, 2015, imports entering the
                                             calendar year immediately preceding                     the annual payment for that person.                   United States of worsted wool fabrics
                                             the payment. For the purpose of                            Two simple examples, the first                     previously described under HTS
                                             calculating the payment for each of the                 involving imports in 2017 and the other               subheadings 9902.51.15 and 9902.51.16
                                             2015–2019 calendar years, it will be                    in 2015, illustrate how this calculation              are assessed a 25% duty, and imports of
                                             assumed that 100% of the person’s                       will work.                                            worsted wool fabrics from Oman
                                             imports were covered by the lower duty.                    The first example applies to a                     previously described under 9902.51.11
                                             The rationale for this assumption is that               payment in 2017. Under the TRQ that                   are assessed a 20% duty.
                                             under the wool TRQ that expired on                      expired on December 31, 2014, worsted                    A person imports 200 square meters
                                             December 31, 2014, persons that                         wool fabrics entering the United States               of worsted wool fabric in 2015, 100
                                             received licenses to import up to                       under HTS subheadings 9902.51.15 and                  square meters of which is of the kind
                                             specific amounts of worsted wool fabric                 9902.51.16 were assessed zero duty, and               previously described by HTS
                                             at reduced duty rates never used the                    worsted wool fabrics from Oman                        subheadings 9902.51.15 and 9902.51.16,
                                             entire license allotment, and the excess                                                                      and the remaining 100 square meters is
                                                                                                     entering under 9902.51.11 were
                                             allotment was left unused. In those                                                                           of the kind previously described in HTS
                                                                                                     assessed a 10% duty. Starting on
                                             cases, because 100% of the person’s                                                                           subheading 9902.51.11 imported from
                                                                                                     January 1, 2017, assume that imports
                                             imports were in fact covered by the                                                                           Oman. The person reports a dollar value
                                                                                                     entering the United States of worsted
                                             available lower duty rate under the                                                                           of $1 per square meter. For the 100
                                                                                                     wool fabrics previously described under
                                             TRQ, the savings referenced in section                                                                        square meters of worsted wool under
                                                                                                     HTS subheadings 9902.51.15 and
                                             12315(e) should also apply to 100% of                                                                         HTS subheadings 9902.51.15 and
                                                                                                     9902.51.16 (but in 2017 actually
                                             a person’s imports.                                                                                           9902.51.16, the calculation would be
                                                                                                     entering under a different HTS
                                                                                                                                                           0.25 (25% converted to a numeric
                                                The duty rate codified in the 2014                   subheading, because of the expiration of
                                                                                                                                                           value), which is the 2015 higher duty
                                             HTS applicable to imports of worsted                    the particular subheadings under HTS                  proxy used when the calendar year
                                             wool fabric in the calendar year                        chapter 99) are assessed a 20% duty,                  immediately preceding the payment is
                                             immediately preceding the payment fall                  and worsted wool fabrics from Oman                    2014, minus 0 (2014 duty rate, 0%,
                                             into one of three categories: (1) The                   previously described under 9902.51.11                 converted to a numeric value),
                                             general duty rate that is applicable to                 are assessed a 10% duty.                              multiplied by 100 (dollar value), which
                                             worsted wool fabric covered by the                         A person imports 200 square meters                 would equal $25 ((0.25¥0) × 100). For
                                             subheading unless one of the other two                  of worsted wool fabric in 2017, 100                   the 100 square meters of worsted wool
                                             categories applies; (2) the duty rate is                square meters of which is of the kind                 fabric under HTS subheading
                                             0%, because imports from certain listed                 described by HTS subheadings                          9902.51.11 imported from Oman, the
                                             countries are duty free; and (3) duty                   9902.51.15 and 9902.51.16, and the                    calculation would be 0.20 (20%
                                             rates applicable to imports from specific               remaining 100 square meters is of the                 converted to a numeric value), the 2015
                                             countries (e.g., 7.5% duty rate for                     kind described in HTS subheading                      higher duty proxy when the calendar
                                             imports of worsted wool fabric under                    9902.51.11, imported from Oman. The                   year immediately preceding the
                                             subheading 9902.51.11 of the HTS from                   person reports a dollar value of $1 per               payment is 2014, minus 0.10 (10%, the
                                             Oman in 2015). Because the HTS is                       square meter. For the 100 square meters               2014 duty rate when Oman is the
                                             statutory, one of the three categories                  of worsted wool described under HTS                   country of origin) multiplied by 100
                                             must be applied when calculating a                      subheadings 9902.51.15 and 9902.51.16,                (dollar value), which would equal $10
                                             monetary payment. Similarly, in years                   the calculation would be 0.20 (20%                    ((0.20¥0.10) × 100). The statutory
                                             following 2014, the applicable duty may                 converted to a numeric value), which is               language of section 12315 directs the
                                             vary as a function of the country of                    the duty rate in 2016, minus 0 (2014                  Secretary to determine the savings that
                                             origin of the imported fabric. In any                   duty rate, 0%, converted to a numeric                 the person would have realized if the
                                             given year, the country of origin of the                value), multiplied by 100 (dollar value),             lower duty rate had been in effect. Thus,
                                             worsted wool fabric will affect the                     which would equal $20 ((0.20¥0) ×                     it is not necessary to determine what the
                                             applicable duty rate and resulting duty                 100). For the 100 square meters of                    person would have done with the
                                             paid used to calculate the payment. The                 worsted wool fabric described under                   savings realized from the lower duty
                                             duty rate applicable to worsted wool                    HTS subheading 9902.51.11 and                         rate. Nor is it necessary to inquire about
                                             fabric under subheadings 9902.51.15                     imported from Oman, the calculation                   the person’s imports in a year that also
                                             and 9902.51.16 of the 2014 HTS was                      would be 0.10 (10% converted to a                     include imported worsted wool fabric
                                             0%, and for subheading 9902.51.11 of                    numeric value), the duty rate in 2015,
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                                                                                                                                                           that is of the kind under HTS
                                             the 2014 HTS was 10%. Thus, in any                      the calendar year immediately                         subheadings other than those covered
                                             given year, duty rates may vary based on                preceding the payment, minus 0.10                     by this payment, imported worsted wool
                                             the country of origin of the imported                   (10%, the 2016 duty rate when Oman is                 fabric not subject to the duty reduction,
                                             fabrics, and as a result, the amount of                 the country of origin) multiplied by 100              or domestic wool.
                                             the payment may be significantly                        (dollar value), which would equal $0                     As discussed earlier, the payment
                                             affected.                                               ((0.10¥0.10) × 100).                                  applies to direct and indirect imports of


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                                                                 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations                                          12325

                                             worsted wool fabric of the kind                         have imported into the U.S., directly or              year . . . if the suspension . . . of duty
                                             described in the three specific HTS                     indirectly, wool yarn, fiber or top of the            on wool fabrics were in effect.’’ The
                                             subheadings. If the import was through                  kind described in subheadings                         focus of the savings is on the difference
                                             a third party broker, the person must so                9902.51.13 and 9902.51.14, and                        between the duty paid for the wool
                                             state in the affidavit prior to the                     manufactured such wool yarn, fiber, or                yarn, fiber or top of the kind described
                                             payment, and provide any other                          top in the U.S.                                       in subheadings 9902.51.13 and
                                             information required by FAS. For                           The duty rates in chapter 99 of the                9902.51.14 in the calendar year
                                             persons that are indirect importers of                  HTS for subheadings 9902.51.13 and                    immediately preceding the payment,
                                             worsted wool fabric, the dollar value of                9902.51.14 are listed in three categories:            and the 0% duty that would have been
                                             the imports reported in their affidavit                 (1) The general duty rate applicable to               paid for such wool imported into the
                                             will be subject to a 10% reduction by                   wool yarn covered by the subheading,                  U.S., directly or indirectly, if the total
                                             the Secretary. The reason for this                      unless one of the other two categories                duty suspension were still in effect.
                                             reduction is that the broker that directly              applies; (2) the duty rate is 0 because               This allows the payment to address the
                                             imported the worsted wool fabric is                     imports from certain listed countries are             ‘‘savings’’ contemplated in 12315(e) of
                                             assumed to sell it to the person who                    duty free; and (3) duty rates applicable              the Farm Bill as close to the real time
                                             submits the affidavit for an amount                     to imports from specific countries (e.g.,             experience of the person as is
                                             higher than the tariff price. The 10%                   2.4% duty rate for imports of wool yarn               administratively possible. For example,
                                             reduction is intended to compensate for                 from Oman in calendar year 2014).                     a person’s import of wool yarn, fiber or
                                             that higher price, and make the reported                Because the HTS is statutory, one of the              top in calendar year 2016 will be the
                                             price paid by indirect importers more                   three categories must be applied when                 basis for calculating the person’s
                                             equivalent to the price paid by direct                  calculating a monetary payment                        payment in 2017. This is consistent
                                             importers. OTEXA also administered                      equivalent to the savings that a person               with the statute’s focus on the savings
                                             this 10% reduction in the reported price                would have realized if the suspension of              that would have been realized if a duty
                                             paid by indirect importers as part of its               the duty rate had been in effect. Thus,               suspension were still in effect, and is
                                             administration of the wool TRQ.                         the country of origin of the wool yarn,               also consistent with CBP’s treatment of
                                                Persons that imported worsted wool                   wool fiber, or wool top, may                          wool yarn, fiber or top in its Wool Duty
                                             fabric directly are required to submit to               significantly affect the duty rate used to            Refund Program, in which it based the
                                             FAS as part of the affidavit package                    calculate a person’s payment. The                     Duty Refund payment on the prior year.
                                             scanned copies of the CBP Form 7501                     general duty rate applicable to                       The payment will be made to eligible
                                             ‘‘Entry Summary’’ for the relevant                      subheading 9902.51.13 in 2000 was 6%                  persons by April 15 of the calendar year
                                             calculations made in the affidavit.                     of the import price of the imported wool              subsequent to the year of the person’s
                                             Persons that imported worsted wool                      yarn at the time the duties were                      reported imports. This allows the
                                             fabric indirectly are required to submit                suspended. The general duty rate                      Secretary to base the payment on the
                                             to FAS as part of the affidavit package                 reverted to 6% of the import price of the             person’s total actual imports of wool
                                             invoices from third party brokers for the               imported wool yarn in 2015.                           yarn, fiber or top during the calendar
                                             relevant calculations made in the                          However, subheading 9902.51.14,
                                                                                                                                                           year immediately preceding the
                                             affidavit.                                              which expired at the end of 2014,
                                                                                                                                                           payment.
                                                Persons applying for a payment must                  applied to wool fiber and top now
                                             provide information required by the                     described in eight subheadings of                        The savings involves three factors
                                             Secretary through annual affidavits.                    chapter 51 of the HTS, and the duty                   spread over two time periods: (1) The
                                                                                                     applicable to each subheading in                      higher duty rate applicable to the wool
                                             (3) Wool Yarn, Wool Fiber, and Wool                     chapter 51 varies. Thus, a determination              yarn, fiber or top described in the
                                             Top Duty Compensation Payment                           of the applicable duty is subject to the              applicable 2014 HTS subheadings in the
                                                All references to subheadings of the                 determination of the Secretary in                     calendar year immediately preceding
                                             HTS in the context of this payment are                  accordance with duty rates applicable to              the payment; (2) the further processing
                                             to the subheadings as described in the                  the specific sub-subheading of wool                   of the imported wool yarn, fiber or top
                                             2014 HTS.                                               fiber or top imported.                                in the calendar year immediately
                                                The duty on imported wool yarn of                       The difference between the 0% duty                 preceding the payment; and (3) the total
                                             the kind described in subheading                        in effect during the duty suspension and              duty suspension applicable to that HTS
                                             9902.51.13 of the HTS, and the duty on                  the duty applicable in the calendar year              subheading of wool yarn, fiber or top in
                                             wool fiber and wool top of the kind                     immediately preceding the payment for                 2014, the last year the duty suspension
                                             described in subheading 9902.51.14 of                   the two HTS subheadings of wool yarn,                 was effective. The higher duty rate paid
                                             the HTS were suspended in their                         fiber, and top (which is 100% of the                  by the eligible person in the calendar
                                             entirety in section 503 of the Trade and                duty) will be used to calculate duty                  year immediately preceding the
                                             Development Act of 2000. The total                      compensation payments. Section                        payment is used to calculate the 2016–
                                             duty suspension for both subheadings                    12315(e) of the Farm Bill anticipates a               2019 payments. However, for the 2015
                                             has been extended three times since                     time when the total duty suspension is                payment, the higher duty rate in the
                                             then, most recently through December                    no longer in effect, acknowledges that                2015 HTS will be used instead of the
                                             31, 2014. Section 12315(e) of the Farm                  duty rates will have increased upon                   total duty suspension effective through
                                             Bill requires the Secretary to make                     expiration of the total duty suspension,              the 2014 calendar year. The reason for
                                             payments to processors of wool yarn,                    and focuses on the savings that an                    this exception for the 2015 payment is
                                             fiber, and top of the kind described in                 importer (direct or indirect) of wool                 that 2014 is both the last year in which
                                                                                                     yarn, fiber, or top would have realized               the total duty suspension was still in
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                                             subheadings 9902.51.13 and 9902.51.14
                                             of the HTS, respectively, in amounts                    had the 0% duty rate remained in effect.              effect and the calendar year
                                             that the processors would have saved if                 Section 12315(e) of the Farm Bill states              immediately preceding the payment (in
                                             the duty suspension had been in effect.                 that the annual payment is ‘‘. . . an                 2015). As a result, for the 2015 payment,
                                                To be eligible for a payment, during                 amount . . . equal to the amount the                  a proxy is necessary for the higher duty
                                             the calendar year immediately                           manufacturer or successor-in-interest                 rate. It is necessary to create this proxy
                                             preceding the payment a person must                     would have saved during the calendar                  for the 2015 payment because Congress


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                                             12326               Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations

                                             requires that this payment be made                      broker, the person must so state in the               consider the comments we receive and
                                             when the duty suspension is no longer                   affidavit prior to the payment, and                   may conduct additional rulemaking
                                             in effect. The first year the duty                      provide any other information required                based on the comments. This rule
                                             suspension is not in effect is calendar                 by FAS. For persons that are indirect                 allows FAS to provide adequate notice
                                             year 2015. Finally, for a 2015 payment,                 importers of wool yarn, fiber, or top, the            to eligible manufacturers about the new
                                             the calendar year immediately                           dollar value of the imports reported in               Pima Agriculture Cotton and Wool
                                             preceding the payment will still be used                their affidavit will be subject to a 10%              Apparel Manufacturers Trusts
                                             to establish the dollar value of the                    reduction by the Secretary. The reason                regulation so that they will be ready to
                                             imported wool yarn, fiber, or top by the                for this reduction is that the broker that            begin filing for payments by March 15
                                             eligible person.                                        directly imported the wool yarn, fiber,               in the case of Agriculture Pima Trust
                                                The dollar value of the wool yarn,                   or top is assumed to sell it to the person            payment, and by March 1 in the case of
                                             fiber or top imported into the U.S. is                  who submits the affidavit for an amount               the several Agriculture Wool Trust
                                             also a factor in determining the savings                higher than the price merely increased                payments.
                                             that would have been realized because                   by the applied duty. The 10% reduction
                                             of the TRQ. Dollar value data effectively               is intended to compensate for that                    Executive Order 12630
                                             captures the price of such fabric and the               higher price, and make the reported                     This Executive Order requires careful
                                             dollar amount paid by the person. CBP                   price paid by indirect importers more                 evaluation of governmental actions that
                                             has not been collecting this data in the                equivalent to the price paid by direct                interfere with constitutionally protected
                                             context of its Wool Duty Refund                         importers. CBP also administers this                  property rights. This rule does not
                                             Program. But in light of the statutory                  10% reduction in the reported price                   interfere with any property rights and,
                                             requirement to capture the savings that                 paid by indirect importers as part of its             therefore, does not need to be evaluated
                                             would have been realized for wool yarn,                 administration of the Wool Duty Refund                on the basis of the criteria outlined in
                                             fiber or top imported into the U.S. had                 Program (which includes subheadings                   Executive Order 12630.
                                             the duty suspension been in effect, the                 9902.51.13 and 9902.51.14).
                                             Secretary will collect the person’s                        Persons that imported wool yarn, fiber             Executive Order 12866
                                             reported dollar value and quantity of                   or top directly are also required to                    This final rule is issued in
                                             imports of wool yarn, fiber or top                      submit to FAS as part of the affidavit                conformance with Executive Order
                                             imported into the U.S. during the entire                package scanned copies of the CBP                     12866 and Administrative Procedure
                                             calendar year immediately preceding                     Form 7501 ‘‘Entry Summary’’ for the                   Act (5 U.S.C. 553). It has been
                                             the payment.                                            relevant calculations made in the                     determined to be not significant for the
                                                The Secretary has determined that the                affidavit. Persons that imported wool                 purposes of Executive Order 12866 and
                                             intent of the savings language in section               yarn, fiber or top indirectly are required            was not reviewed by OMB for this
                                             12315 of the Farm Bill can be best                      to submit to FAS as part of the affidavit             purpose. A cost-benefit assessment of
                                             realized by looking at what the person                  package invoices from third party
                                             would have saved during the calendar                                                                          this rule was not completed.
                                                                                                     brokers for the relevant calculations
                                             year immediately preceding the                          made in the affidavit.                                Executive Order 12372
                                             payment. For example, the dollar value                     Persons applying for a payment must
                                             of the person’s imports wool yarn, fiber,                                                                       This final rule is not subject to
                                                                                                     provide information required by the
                                             or top in calendar year 2014 will be the                                                                      Executive Order 12372, which requires
                                                                                                     Secretary through annual affidavits.
                                             basis for calculating the payment in                                                                          intergovernmental consultation with
                                             2015 (in contrast to the proxy duty used                (4) Refund of Duties Paid on Imports of               State and local officials. See the notice
                                             for the 2015 payment). This allows the                  Certain Wool Products                                 related to 7 CFR part 3015, subpart V,
                                             payment to address the ‘‘savings’’ in                     CBP is administering this payment to                published at 48 FR 29115 (June 24,
                                             section 12315(e) of the Farm Bill as                    U.S. manufacturers and processors of                  1983).
                                             close to the real time experience of the                wool for duties paid on the imported                  Executive Order 12988
                                             person as is administratively possible                  wool in 2000, 2001, and 2002 through
                                             yet still cover the full prior year’s                   calendar year 2015. FAS will continue                   This final rule has been reviewed in
                                             imports.                                                this payment for calendar years 2016–                 accordance with Executive Order 12988.
                                                Other than with respect to the 2015                  2019, and will publish regulations later              This rule would not preempt State or
                                             payment calculated using a proxy duty                   next year. The regulations for this                   local laws, regulations, or policies
                                             rate as described above, the duty                       payment will be published at 7 CFR                    unless they present an irreconcilable
                                             compensation payment under this                         1471.12.                                              conflict with this rule. This rule would
                                             section will be equal to 100% of the                                                                          not be retroactive.
                                             duty paid for wool yarn, fiber, or top of               Effective Date and Notice and Comment
                                                                                                                                                           Executive Order 13132
                                             the kind described in subheadings                         We are issuing this final rule without
                                             9902.51.13 and 9902.51.14 imported in                   prior notice and opportunity for                         This final rule has been reviewed
                                             the calendar year immediately                           comment. The Administrative                           under Executive Order 13132,
                                             preceding the payment.                                  Procedure Act exempts rules ‘‘relating                ‘‘Federalism.’’ The policies contained in
                                                The two HTS subheadings of                           to agency management or personnel or                  this final rule do not have any
                                             imported wool yarn, fiber, or top                       to public property, loans, grants,                    substantial direct effect on States, on the
                                             covered by this payment are either                      benefits, or contracts’’ from the statutory           relationship between the Federal
                                             imported directly by persons, in which                  requirement for prior notice and                      government and the States, or on the
                                             case the person also directly paid the                  opportunity for comment 5 U.S.C.                      distribution of power and
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                                             duty, or imported indirectly through a                  553(a)(2). Accordingly, this rule may be              responsibilities among the various
                                             third party broker that directly paid the               made effective less than 30 days after                levels of government, nor does this final
                                             duty. The payment applies to persons                    publication in the Federal Register.                  rule impose substantial direct
                                             that either directly or indirectly                      However, we invite you to participate in              compliance costs on State and local
                                             imported wool yarn, fiber, and top. If                  this rulemaking by submitting written                 governments. Therefore, consultation
                                             the import was through a third party                    comments, data, or views. We will                     with the States is not required.


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                                                                 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations                                           12327

                                             Executive Order 13175                                   PART 1471—PIMA AGRICULTURE                            payment, make affidavits available on
                                               This final rule has been reviewed for                 COTTON TRUST FUND                                     the FAS Web site, which can be found
                                             compliance with E.O. 13175. The                         (AGRICULTURE PIMA TRUST) AND                          at http://www.fas.usda.gov/. Affidavits
                                             policies contained in this final rule do                AGRICULTURE WOOL APPAREL                              must be submitted electronically to
                                             not have tribal implications that                       MANUFACTURERS TRUST FUND                              pimawool@fas.usda.gov.
                                                                                                     (AGRICULTURE WOOL TRUST)                                 (2) Filing deadline. Any person filing
                                             preempt tribal law.
                                                                                                                                                           an affidavit under this part for a
                                             Regulatory Flexibility Act                              Subpart A—Agriculture Pima Trust                      particular year must file the affidavit for
                                               The Regulatory Flexibility Act does
                                                                                                     Sec.                                                  such calendar year, during calendar
                                                                                                     1471.1 Provisions common to this subpart.             years 2015 through 2018, not later than
                                             not apply to this rule because FAS is not               1471.2 Pima cotton payments.
                                             required by 5 U.S.C. 553 or any other                                                                         March 15 of the applicable calendar
                                                                                                     1471.3 Affidavit of producers of ring spun            year.
                                             law to publish a notice of proposed                          pima cotton yarn.                                   (3) Basic information. In addition to
                                             rulemaking with respect to the subject                  1471.4 Affidavit of manufacturers of pima
                                                                                                                                                           information required in §§ 1471.3,
                                             matter of this rule.                                         cotton shirts.
                                                                                                     1471.5 Affidavit of pima cotton trade                 1471.4, and 1471.5, as applicable, every
                                             Civil Rights Impact Statement                                association.                                     person applying for a payment must
                                                No major civil rights impact is likely                                                                     provide the following information,
                                                                                                     Subpart B—Agriculture Wool Trust                      applicable to the year for which a
                                             to result from the announcement of this                 1471.10 Provisions common to this subpart.
                                             notice. It will not have a negative civil                                                                     payment is sought:
                                                                                                     1471.11 Payments to manufacturers of                     (i) The current company name,
                                             rights impact on very-low income, low                       certain worsted wool fabrics.                     address, contact, phone number of the
                                             income, and moderate income and                         1471.12 [Reserved]                                    person;
                                             minority populations.                                   1471.13 Monetization of the wool tariff rate
                                                                                                                                                              (ii) The name and address of each
                                                                                                         quota.
                                             Environmental Assessment                                1471.14 Wool yarn, wool fiber, and wool               plant or location of the person during
                                                                                                         top duty compensation payment.                    the calendar year immediately
                                               The environmental impacts of this
                                                                                                                                                           preceding the payment; and
                                             rule have been considered in a manner                     Authority: Sections 501–506, Pub. L. 106–              (iii) A W–9 providing the Federal tax
                                             consistent with the provisions of the                   200, (114 Stat. 299–304); Section 4002, Pub.
                                                                                                     L. 108–429 (7 U.S.C. 7101 note); Section
                                                                                                                                                           identification number of the person;
                                             National Environmental Policy Act                                                                                (4) Standard Form 1199A. Every
                                             (NEPA, 42 U.S.C. 4321–4347), the                        1633, Pub. L. 109–280 (120 Stat. 1166);
                                                                                                     Section 325, Pub. L. 110–343 (122 Stat.               person claiming a payment must
                                             regulations of the Council on                                                                                 provide Standard Form 1199A, a direct
                                                                                                     3875); Sections 12314 and 12315, Pub. L.
                                             Environmental Quality (40 CFR parts                                                                           deposit sign-up form, to facilitate any
                                                                                                     113–79 (7 U.S.C. 2101 note and 7101 note).
                                             1500–1508), and FAS regulations for                                                                           transfer of funds.
                                             compliance with NEPA (7 CFR part                        Subpart A—Agriculture Pima Trust                         (5) Affirmation. Every person
                                             799). FAS has determined that NEPA                                                                            applying for a payment must affirm in
                                             does not apply to this rule and that no                 § 1471.1 Provisions common to this
                                                                                                     subpart.
                                                                                                                                                           its affidavit that ‘‘all information
                                             environmental assessment or                                                                                   contained in the application is complete
                                             environmental impact statement will be                    (a) Agriculture Pima Trust—(1)                      and correct and that the information
                                             prepared.                                               Establishment. The Agriculture Pima                   does not contain a false claim,
                                                                                                     Trust has been established to provide                 statement, or representation.’’
                                             Unfunded Mandates Reform Act
                                                                                                     funding for payments under this part.                    (6) Document retention. All persons
                                               This final rule does not impose any                     (2) Purpose. The purpose of the                     receiving a payment under this part
                                             enforceable duty or contain any                         Agriculture Pima Trust is to reduce the               must maintain all pertinent
                                             unfunded mandate as described under                     injury to domestic manufacturers                      documentation for 3 years after the year
                                             Title II of the Unfunded Mandates                       resulting from tariffs on cotton fabric               of receipt of the payment.
                                             Reform Act of 1995 (UMRA). Therefore,                   that are higher than tariffs on certain                  (7) False statements. Persons
                                             this rule is not subject to the                         apparel articles made of cotton fabric.               providing false or fraudulent claims, or
                                             requirements of sections 202 and 205 of                   (3) Funding availability. $16,000,000               persons making materially false
                                             UMRA.                                                   will be available annually for eligible               statements or representations in their
                                             E-Government Act Compliance                             payments authorized under subpart A of                affidavit, are subject to civil or criminal
                                                                                                     this part.                                            penalties pursuant to 18 U.S.C. 1001.
                                               FAS is committed to complying with                      (4) Definitions. As used in this                       (8) Confidentiality. Specific business
                                             the E-Government Act to promote the                     subpart:                                              information that is marked ‘‘business
                                             use of the internet and other                             Agriculture Pima Trust means the                    confidential’’ will be protected from
                                             information technologies to provide                     Pima Agriculture Cotton Trust Fund.                   disclosure to the full extent permitted
                                             increased opportunities for citizen                       CCC means the Commodity Credit                      by law.
                                             access to Government information,                       Corporation.                                             (9) Review of affidavits. Affidavits
                                             services and for other purposes. The                      FAS means the Foreign Agricultural                  will be reviewed to determine whether
                                             forms, regulations, and other                           Service.                                              they are complete and responsive to the
                                             information collection activities                         Secretary means the Secretary of                    content and form of affidavit
                                             required to be utilized by a person                     Agriculture.                                          requirements under this part.
                                             subject to this rule are available at:                    Agriculture Pima Trust means the                       (10) Finality of determinations by
                                             http://www.fas.usda.gov.                                Pima Agriculture Cotton Trust Fund.
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                                                                                                                                                           Secretary. A determination by the
                                             List of Subjects in 7 CFR Part 1471                       U.S. means the United States of                     Secretary about a payment under this
                                                                                                     America.                                              part shall be final and is not subject to
                                               Agricultural commodities, Imports.                      (b) Other provisions common to                      appeal or protest.
                                               For the reasons set forth in the                      subpart A of this part—(1) Affidavits.                   (11) Timing of payments. A payment
                                             preamble, 7 CFR part 1471 is added to                   FAS shall annually, not later than                    for which a person is eligible under this
                                             read as follows:                                        February 15 of the year of the applicable             part will be disbursed in each of


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                                             12328               Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations

                                             calendar years 2015 through 2018, not                   § 1471.3 Affidavit of producers of ring               manufacturing of men’s and boys’
                                             later than April 15 of the applicable                   spun pima cotton yarn.                                cotton shirts.
                                             year.                                                     In addition to reporting and                          (b) Date of purchase. For purposes of
                                                (12) Sequester. Payments covered by                  information requirements in § 1471.1,                 the affidavit under paragraph (a) of this
                                             this part shall be subject to sequester of              the affidavit of a yarn spinner that is a             section, the date of purchase shall be the
                                             payments, if required by law.                           producer of ring spun cotton yarn must                invoice date, and the dollar value shall
                                                                                                     be an affidavit provided annually by an               be determined excluding duty,
                                             § 1471.2   Pima cotton payments.                        officer of the yarn spinner that produces             shipping, and insurance.
                                                From available funds in the                          ring spun yarns affirming that:
                                                                                                       (a) During the calendar year                        § 1471.5 Affidavit of pima cotton trade
                                             Agriculture Pima Trust, CCC will                                                                              associations.
                                             annually make payments for each of                      immediately preceding the payment and
                                                                                                     during calendar year 2013, the yarn                     In addition to applicable information
                                             calendar years 2015 through 2018 as                                                                           requirements in § 1471.1, trade
                                             follows:                                                spinner used pima cotton to produce
                                                                                                     ring spun cotton yarns in the U.S.                    associations filing a claim for a payment
                                                (a) Twenty-five percent of the                                                                             must electronically provide a statement
                                             amounts in the Agriculture Pima Trust                   measuring less than 83.33 decitex
                                                                                                     (exceeding 120 metric number), in                     which states whether, during the
                                             shall be paid to one or more nationally                                                                       calendar year immediately preceding
                                             recognized associations established for                 single and plied form;
                                                                                                       (b) During 2013, the yarn spinner                   the payment and in calendar year 2014,
                                             the promotion of pima cotton for use in                                                                       they were, as determined by the
                                                                                                     actually produced the quantity,
                                             textile and apparel goods, as determined                                                                      Secretary, a domestic nationally
                                                                                                     measured in pounds, of ring spun cotton
                                             by the Secretary, during the calendar                                                                         recognized association established and
                                                                                                     yarns measuring less than 83.33 decitex
                                             year immediately preceding the                                                                                operating for the promotion of pima
                                                                                                     (exceeding 120 metric number), in
                                             payment.                                                                                                      cotton for domestic use in textile and
                                                                                                     single and plied form; and
                                                (b) Twenty-five percent of the                         (c) The yarn spinner continues to                   apparel goods.
                                             amounts in the Agriculture Pima Trust                   maintain supporting documentation
                                             shall be paid to yarn spinners of pima                  about such production during calendar                 Subpart B—Agriculture Wool Trust
                                             cotton that produce ring spun cotton                    year 2013 which shows the actual                      § 1471.10   Provisions common to this
                                             yarns in the U.S. during 2013 and the                   quantity of such yarns produced, and                  subpart.
                                             calendar year immediately preceding                     evidencing the yarns as ring spun pima
                                             the payment, to be allocated to each                                                                            (a) Agriculture wool trust—(1)
                                                                                                     cotton yarns, measuring less than 83.33               Establishment. The Agriculture Wool
                                             yarn spinner in an amount that bears the                decitex (exceeding 120 metric number),
                                             same ratio as                                                                                                 Trust has been established to provide
                                                                                                     in single and plied form.                             funding for payments under this part.
                                                (1) The yarn spinner’s production of                                                                         (2) Purpose. The purpose of the
                                             ring spun cotton yarns in 2013,                         § 1471.4 Affidavit of manufacturers of
                                                                                                     pima cotton shirts.                                   Agriculture Wool Trust is to reduce the
                                             measuring less than 83.33 decitex                                                                             injury to domestic manufacturers
                                             (exceeding 120 metric number) from                        (a) In general. In addition to
                                                                                                                                                           resulting from tariffs on wool fabric that
                                             pima cotton in single and plied form                    applicable information requirements in
                                                                                                                                                           are higher than tariffs on certain apparel
                                             during calendar year 2013, bears to                     § 1471.1, an affidavit of a manufacturer
                                                                                                                                                           articles made of wool fabric.
                                                (2) The production of the yarns                      that is a producer of men’s and boys’                   (3) Funding availability. Not more
                                             described in paragraph (b)(1) of this                   pima cotton shirts must be an affidavit               than $30,000,000 will be available
                                             section during calendar year 2013 by all                provided annually by an officer of the                annually for payments authorized under
                                             yarn spinners that qualify under this                   manufacturer which affirms the                        this part.
                                             paragraph (b).                                          following information                                   (4) Definitions. As used in this
                                                                                                       (1) During the calendar year                        subpart:
                                                (c) Fifty percent of the amounts in the
                                                                                                     immediately preceding the payment and                   Agriculture Wool Trust means the
                                             Agriculture Pima Trust shall be paid to
                                                                                                     during calendar year 2013, the                        Agriculture Wool Apparel
                                             manufacturers that, during the calendar
                                                                                                     manufacturer used imported pima                       Manufacturers Trust Fund.
                                             year immediately preceding the
                                                                                                     cotton fabric to cut and sew men’s and                  U.S. means the United States of
                                             payment, certify, pursuant to the
                                                                                                     boys’ pima cotton shirts in the U.S.;                 America.
                                             affidavit under § 1471.4, they used                       (2) During calendar year 2013, the
                                             imported pima cotton fabric during                                                                              CCC means the Commodity Credit
                                                                                                     dollar value of imported woven pima                   Corporation.
                                             calendar year 2013 to produce such                      cotton shirting fabric of 80s or higher
                                             shirts, to be allocated to each                                                                                 FAS means the Foreign Agricultural
                                                                                                     count and 2-ply in warp purchased and                 Service.
                                             manufacturer in an amount that bears                    used by the manufacturer to cut and sew                 HTS means the Harmonized Tariff
                                             the same ratio as                                       men’s and boys’ woven pima cotton                     Schedule of the United States.
                                                (1) The dollar value (excluding duty,                shirts in the U.S.;                                     Secretary means the Secretary of
                                             shipping, and insurance of imported                       (3) The manufacturer continues to                   Agriculture.
                                             woven pima cotton shirting fabric of 80s                maintain invoices and other supporting                  TRQ means Tariff Rate Quota.
                                             or higher count and 2-ply in warp used                  documentation (such as price lists and                  (b) Provisions common to this part—
                                             by the manufacturer during calendar                     other technical descriptions of the fabric            (1) Affidavits. FAS shall annually, not
                                             year 2013 to produce men’s and boys’                    qualities) showing the dollar value of                later than February 15 of the year of the
                                             pima cotton shirts, bears to                            such fabric purchased, the date of                    applicable payment, make affidavits
                                                (2) The dollar value (excluding duty,
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                                                                                                     purchase, and evidencing the fabric as                available on the FAS Web site, which
                                             shipping, and insurance of the fabric                   woven pima cotton fabric of 80s or                    can be found at http://
                                             described in paragraph (c)(1) of this                   higher count and 2-ply in warp; and                   www.fas.usda.gov/. Affidavits must be
                                             section used to manufacture men’s and                     (4) The imported pima cotton fabric                 submitted electronically to: pimawool@
                                             boy’s pima cotton shirts in 2013 by all                 purchased in 2013 and in the calendar                 fas.usda.gov.
                                             manufacturers that qualify under this                   year immediately preceding the                           (2) Filing deadline. Any person filing
                                             paragraph (c).                                          payment was suitable for use in the                   an affidavit under this part for a


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                                                                 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations                                            12329

                                             particular year must file the affidavit for             Agriculture Wool Trust during the year                eligible for a payment as provided in
                                             such calendar year, during calendar                     of the payment, and will be subject to                paragraph (b)(2)(ii) of this section.
                                             years 2015 through 2019, not later than                 sequester, if required by law.                           (ii) Payment amounts. A total of
                                             March 1 of such year.                                     (13) HTS subheadings. All references                $2,666,000 will be allocated annually
                                                (3) Required information. In addition                to subheadings of the HTS in this part                among eligible persons covered by this
                                             to information required in §§ 1471.11,                  are to the subheadings as described in                paragraph on the basis of the percentage
                                             1471.13, and 1471.14, as applicable,                    the HTS in 2014.                                      of each eligible person’s total
                                             every person applying for a payment                                                                           production (actual production, not
                                             under this part must provide the                        § 1471.11 Payments to manufacturers of
                                                                                                                                                           estimates) for the calendar year
                                                                                                     certain worsted wool fabrics.
                                             following information applicable to the                                                                       immediately preceding the payment of
                                             year for which a payment is sought:                        (a) Definitions. In this section the               qualifying worsted wool fabric
                                                (i) The current company name,                        following definitions apply:                          described in paragraph (b)(2)(i) of this
                                             address, contact, phone number of the                      Eligible person. The term ‘‘eligible
                                                                                                                                                           section in relation to the total
                                             person;                                                 person’’ means a manufacturer in the
                                                                                                                                                           production for the calendar year
                                                (ii) The name and address of each                    U.S. of qualifying worsted wool fabric
                                                                                                                                                           immediately preceding the payment of
                                             plant or location of the person in the                  during the calendar year immediately
                                                                                                                                                           such fabric by all eligible persons who
                                             year immediately preceding the                          preceding the payment and during each
                                                                                                                                                           qualify for payments under this
                                             payment; and                                            of calendar years 1999, 2000, and 2001.
                                                                                                                                                           paragraph.
                                                (iii) A W–9 providing the Federal tax                   Qualifying worsted wool fabric. The
                                                                                                                                                              (c) Annual affidavit—(1) In general.
                                             identification number of the person.                    term ‘‘qualifying worsted wool fabric’’
                                                                                                                                                           An eligible person applying for a
                                                (4) Standard Form 1199A. Every                       means a worsted wool fabric containing
                                                                                                                                                           payment under this section shall
                                             person seeking a payment must also                      at least 85% by weight worsted wool of
                                                                                                                                                           comply with all applicable reporting
                                             provide Standard Form 1199A, a direct                   the kind described in subheading
                                                                                                                                                           requirements of this section and of
                                             deposit sign-up form, to facilitate any                 9902.51.11 or 9902.51.15 of the 2014
                                                                                                                                                           § 1471.10.
                                             transfer of funds.                                      HTS that, during the calendar year
                                                                                                                                                              (2) Specific business information. An
                                                (5) Affirmation. A person filing an                  immediately preceding the payment and
                                                                                                                                                           eligible person shall, for the calendar
                                             affidavit under this part must affirm that              during each of calendar years 1999,
                                                                                                                                                           year immediately preceding the
                                             ‘‘all information contained in the                      2000, and 2001, was manufactured by
                                                                                                                                                           payment and for each of calendar years
                                             application is complete and correct and                 an eligible person in the United States.
                                                                                                        (b) Distribution of funds. From                    1999, 2000, and 2001, annually report
                                             that the information does not contain a                                                                       the actual dollar value and the actual
                                             false claim, statement, or                              amounts in the Agriculture Wool Trust,
                                                                                                     CCC will annually make payments for                   quantity (linear yards) of qualifying
                                             representation.’’                                                                                             worsted wool fabric that was
                                                (6) Document retention. All persons                  each of calendar years 2015 through
                                                                                                     2019 to eligible persons that                         manufactured.
                                             receiving a payment under this part                                                                              (3) Manufacturing of wool. When
                                             must maintain all pertinent                             manufactured qualifying worsted wool
                                                                                                                                                           reporting the annual dollar value and
                                             documentation for three years after the                 fabric as provided in paragraphs (b)(1)
                                                                                                                                                           quantity of imports of qualifying
                                             year of receipt of the payment.                         or (2) of this section.
                                                                                                        (1) Payments for production under                  worsted wool fabric, and the annual
                                                (7) False statements. Persons                                                                              dollar value and quantity of the
                                             providing false or fraudulent claims or                 subheading 9902.51.11 of the HTS—(i)
                                                                                                     In general. Eligible persons that                     qualifying wool fabric that was
                                             making materially false statements or                                                                         manufactured, an eligible person may
                                             representations are subject to civil or                 manufactured qualifying worsted wool
                                                                                                     fabric during calendar years 1999, 2000,              either have manufactured the qualifying
                                             criminal penalties pursuant to 18 U.S.C.                                                                      worsted wool on its own behalf or had
                                             1001.                                                   and 2001 that is of the kind described
                                                                                                     in subheading 9902.51.11 of the HTS are               another person manufacture the
                                                (8) Confidential information. Specific
                                                                                                     eligible for a payment as provided in                 qualifying worsted wool fabric,
                                             business information provided in
                                                                                                     paragraph (b)(1)(ii) of this section.                 provided the eligible person owned the
                                             affidavits that is marked ‘‘business
                                                                                                        (ii) Payment amounts. A total of                   qualifying worsted wool fabric at the
                                             confidential’’ will be protected from
                                                                                                     $2,666,000 will be allocated annually                 time of manufacture.
                                             disclosure to the full extent permitted
                                             by law.                                                 among eligible persons covered by this                § 1471.12   [Reserved]
                                                (9) Review of affidavits. Affidavits                 paragraph on the basis of the percentage
                                             will be reviewed to determine whether                   of each eligible person’s total                       § 1471.13 Monetization of the wool tariff
                                             they are complete and responsive to the                 production (actual production, not                    rate quota.
                                             content and form of affidavit                           estimates) for the calendar year                        (a) Definitions. In this section the
                                             requirements in this part.                              immediately preceding the payment of                  following definitions apply:
                                                (10) Finality of determination by the                qualifying worsted wool fabric                          (1) Lower duty rate. The term ‘‘lower
                                             Secretary. A determination by the                       described in paragraph (b)(1)(i) of this              duty rate’’ means the duty rate as
                                             Secretary about a payment under this                    section in relation to the total                      codified in the 2014 HTS that would
                                             part shall be final and is not subject to               production for the calendar year                      have been applicable to qualifying
                                             appeal or protest.                                      immediately preceding the payment of                  worsted wool fabric of the kind
                                                (11) Timing of payments. A payment                   such fabric by all eligible persons who               described in subheadings 9902.51.11,
                                             for which a person eligible under this                  qualify for payments under this                       9902.51.15, and 9902.51.16 of the 2014
                                             part will be disbursed in each of                       paragraph.                                            HTS prior to the expiration of the Wool
                                                                                                        (2) Payments for production under                  TRQ on December 31, 2014.
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                                             calendar years 2015 through 2019 not
                                             later than April 15 of the applicable                   subheading 9902.51.15—(i) In general.                   (2) Eligible person—(i) In general. The
                                             year.                                                   Eligible persons that manufactured                    term ‘‘eligible person’’ means a
                                                (12) Proration and sequester.                        qualifying worsted wool fabric during                 manufacturer (or a successor-in-interest
                                             Payments covered by this part will be                   calendar years 1999, 2000, and 2001                   to the manufacturer) in the U.S. during
                                             subject to proration in the event that                  that conforms in composition to                       the calendar year immediately
                                             insufficient funds exist in the                         subheading 9902.51.15 of the HTS are                  preceding the payment that:


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                                             12330               Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations

                                                (A) Imported qualifying worsted wool                    (c) Calculation of monetized TRQ                      (iii) Multiplying the numeric values
                                             fabric; and                                             payment. A payment will be established                described in paragraphs (c)(3)(i) and (ii)
                                                (B) Used the imported qualifying                     by calculating, as provided in                        of this section); and(iv) Adding the
                                             worsted wool fabric                                     paragraphs (c)(1) through (4) of this                 product obtained in paragraph (c)(3)(iii)
                                                (1) In the case of wool of the kind                  section, the savings that would have                  of this section to the product obtained
                                             described in subheadings 9902.51.11 or                  been realized by the eligible person for              for every applicable subheading of
                                             9902.51.15 of the 2014 HTS, to produce                  imports of qualifying worsted wool                    worsted wool fabric.
                                             worsted wool suits, suit-type jackets and               fabric of the kind described in one of the               (4) 2016–2019 payments. A payment
                                             trousers for men and boys; or                           three subheadings 9902.51.11,                         in each of years 2016–2019 shall be
                                                (2) In the case of wool fabric of the                9902.51.15, or 9902.51.16 of the 2014                 calculated by
                                             kind described in subheading                            HTS (as applicable), had the lower duty                  (i) Establishing the reported dollar
                                             9902.51.16 of the 2014 HTS, used such                   rate been in effect.                                  value of imported worsted wool fabric
                                             wool fabric in manufacturing.                              (1) Payment formula. Except as                     during the calendar year immediately
                                                (ii) Successor-in-interest. If a person              provided in paragraph (c)(2) of this                  preceding the payment under the 2014
                                             satisfies the criteria for becoming a                   section, a payment shall be calculated                HTS subheading of worsted wool fabric;
                                             successor-in-interest to an eligible                    by                                                       (ii) Subtracting the lower duty rate
                                             person under paragraph (a)(4) of this                      (i) Establishing the reported dollar               (converted to numeric value) that would
                                             section, the person shall succeed to the                value of imported worsted wool fabric,                have been applicable to the 2014 HTS
                                             status of the eligible person and become                for each of the 2014 HTS subheadings                  subheading of worsted wool fabric from
                                             eligible for the payment.                               of worsted wool fabric, during the                    the duty rate applicable to the calendar
                                                (3) Qualifying worsted wool fabric.                  calendar year immediately preceding                   year preceding the payment (converted
                                             The term ‘‘qualifying worsted wool                      the payment;                                          to numeric value);
                                             fabric’’ means imported worsted wool                       (ii) Subtracting the duty rate                        (iii) Multiplying the numeric values
                                             fabric containing at least 85% by weight                (converted to numeric value) for each                 described in paragraphs (c)(4)(i) and (ii)
                                             worsted wool of the kind described in                   applicable 2014 HTS subheading of                     of this section; and
                                             subheadings 9902.51.11, 9902.51.15, or                  worsted wool fabric that would have                      (iv) Adding the product obtained in
                                             9902.51.16 of the 2014 HTS that, during                 been paid in calendar year 2014 from                  paragraph (c)(3)(iii) of this section to the
                                             the calendar year immediately                           the duty rate (converted to numeric                   product obtained for every applicable
                                             preceding the payment was:                              value) that was actually paid in the                  subheading of worsted wool fabric.
                                                (i) Imported by an eligible person in                calendar year immediately preceding                      (d) Annual affidavit—(1) In general.
                                             the U.S.; and                                           the payment;                                          An eligible person applying for a
                                                (ii) Used by the eligible person in the                 (iii) For each applicable 2014 HTS                 payment under this section shall
                                             U.S.                                                    subheading of worsted wool fabric,                    comply with all applicable reporting
                                                (A) In the case of wool fabric of the
                                                                                                     multiplying the numeric values                        requirements of this section and of
                                             kind described in subheadings
                                                                                                     described in paragraphs (c)(1)(i) and (ii)            § 1471.10.
                                             9902.51.11 or 9902.51.15 of the HTS, to
                                                                                                     of this section; and                                     (2) Specific business information—(i)
                                             produce worsted wool suits, suit-type                      (iv) Adding each product obtained in               Imports and production.—An eligible
                                             jackets and trousers for men and boys;                  paragraph (c)(1)(iii) of this section.                person shall, for the entire calendar year
                                             or                                                         (2) Exception for 2015 payment. In the
                                                (B) In the case of wool fabric of the                                                                      immediately preceding the payment,
                                                                                                     case of the payment to be made in 2015,               report the actual dollar value and the
                                             kind described in subheading
                                                                                                     for purposes of the calculation                       actual quantity of
                                             9902.51.16 of the HTS, was used in
                                                                                                     component described in paragraph                         (A) Imports into the U.S. of qualifying
                                             manufacturing.
                                                (4) Successor-in-interest. The term                  (c)(1)(ii) of this section the duty rate              worsted wool fabric (square meters); and
                                             ‘‘successor-in-interest’’ means a person                applicable in 2015 shall be deemed the                   (B) The qualifying worsted wool
                                             that is eligible to claim a payment under               duty rate actually paid in 2014. The                  fabric used by the eligible person in the
                                             this section as if the person were the                  reason for this exception for the 2015                U.S.
                                                                                                     payment is that 2014 is both the last                    (1) In the case of wool of the kind
                                             original eligible person, without regard
                                                                                                     year in which the lower duty rate was                 described in subheadings 9902.51.11 or
                                             to section 3727, title 31, United States
                                             Code because of—                                        still in effect, and is also the calendar             9902.51.15 of the 2014 HTS, to produce
                                                (i) An assignment of the claim;                      year immediately preceding the                        worsted wool suits, suit-type jackets and
                                                (ii) An assignment of the original                   payment (the payment is in 2015). As a                trousers for men and boys (units); or
                                             eligible person’s right to manufacture                  result, for the 2015 payment, a proxy is                 (2) In the case of wool of the kind
                                             under the same trade name; or                           necessary for the higher duty rate in the             described in subheading 9902.51.16 of
                                                (iii) A reorganization of the eligible               calendar year immediately preceding                   the 2014 HTS, such wool that was
                                             person.                                                 the payment.                                          manufactured (square meters).
                                                (b) Purposes. The purposes of a TRQ                     (3) 2015 payment. A payment in 2015                   (ii) Direct and indirect importers—(A)
                                             monetization payment are to provide an                  shall be calculated by                                In general. Eligible persons that import
                                             eligible person—                                           (i) Establishing the reported dollar               qualifying worsted wool fabric through
                                                (1) Compensation for termination of                  value of imported worsted wool fabric                 a third party broker are considered to be
                                             the TRQ for qualifying worsted wool                     during the calendar year immediately                  indirect importers of the qualifying
                                             fabric; and                                             preceding the payment under the 2014                  worsted wool fabric. Persons that
                                                (2) A payment that is equivalent to the              HTS subheading of worsted wool fabric;                directly import qualifying worsted wool
                                                                                                        (ii) Subtracting the lower duty rate
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                                             amount the eligible person would have                                                                         fabric and pay the import duty for such
                                             saved during the calendar year for                      (converted to numeric value) that would               wool are considered to be direct
                                             imports of qualifying worsted wool                      have been applicable to the 2014 HTS                  importers of the qualifying worsted
                                             fabric if the lower duty rate under the                 subheading of worsted wool fabric from                wool fabric.
                                             applicable 2014 HTS subheading(s) of a                  the duty rate applicable to that HTS                     (B) Reported dollar value. Eligible
                                             qualifying worsted wool fabric were in                  subheading in 2015 (converted to                      persons must state in their annual
                                             effect.                                                 numeric value);                                       affidavit whether, in the calendar year


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                                                                 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations                                           12331

                                             immediately preceding the payment,                      manufactured, an eligible person may                  31, 2014. These duties were reinstated
                                             they were direct or indirect importers,                 either have manufactured the wool on                  as of January 1, 2015.
                                             and the dollar value of the imported                    its own behalf or had another person                     (c) Duty compensation payment—(1)
                                             qualifying worsted wool fabric. The                     manufacture the wool, provided the                    Calculation of payment. For each of the
                                             reported dollar value of such imports by                eligible person owned the wool at the                 2015–2019 calendar years the duty
                                             indirect importers will be subject to a                 time of manufacture.                                  compensation payment of an eligible
                                             10% reduction.                                             (B) Applicability. This paragraph                  person will be established by
                                                (C) Affirmation. An eligible person                  applies to wool of the kind described in              calculating, as provided in paragraphs
                                             shall annually affirm in the affidavit                  subheading 9902.51.16 of the 2014 HTS.                (c)(2) through (5) of this section, the
                                             that, in the calendar year immediately                                                                        savings that would have been realized
                                             preceding the payment, in the U.S., the                 § 1471.14 Wool yarn, wool fiber, and wool
                                                                                                     top duty compensation payment.
                                                                                                                                                           by the eligible person for imports of
                                             eligible person:                                                                                              qualifying wool had the duty
                                                (1) Directly or indirectly imported the                 (a) Definitions. In this section the               suspension been in effect.
                                             qualifying worsted wool fabric into the                 following definitions apply:                             (2) Savings for each subheading. The
                                             U.S.;                                                      (1) Duty. The term ‘‘duty’’ means the
                                                                                                                                                           savings realized by an eligible person
                                                (2) Used that fabric to produce in the               duty rate codified in the HTS for a year
                                                                                                                                                           for imports of qualifying wool under a
                                             U.S. worsted wool suits, suit jackets,                  that is applicable to qualifying wool of
                                                                                                                                                           HTS subheading covered by this section
                                             and trousers for men and boys (or, in the               the kind described in subheadings
                                                                                                                                                           shall be obtained by multiplying
                                             case of qualifying worsted wool fabric of               9902.51.13 and 9902.51.14 of the 2014
                                                                                                                                                              (i) The reported dollar value of
                                             the kind described in the 2014 HTS                      HTS.
                                                                                                                                                           imports under a HTS subheading during
                                             subheading 9902.51.16, for                                 (2) Eligible person—(i) In general. The
                                                                                                                                                           the calendar year immediately
                                             manufactured in the U.S.); and                          term ‘‘eligible person’’ means a
                                                                                                                                                           preceding the payment; and
                                                (3) Imported qualifying worsted wool                 manufacturer (or a successor-in-interest
                                                                                                     to the manufacturer) in the U.S. during                  (ii) Except as provided in paragraph
                                             fabric from the country of origin
                                                                                                     the calendar year immediately                         (c)(5) of this section, the duty applicable
                                             identified in the affidavit.
                                                (iii) Import documentation—(A)                       preceding the payment; that                           to that HTS subheading in the calendar
                                             Direct imports. Applicable to the                          (A) Imported qualifying wool; and                  year preceding the payment, converted
                                             calendar year immediately preceding                        (B) Manufactured the qualifying wool.              to numeric value.
                                             payment, an eligible person that directly                  (ii) Successor-in-interest. If a person               (3) Sum of subheading savings. The
                                             imported qualifying worsted wool fabric                 satisfies the criteria for becoming a                 product obtained in paragraph (c)(2) of
                                             is required to submit to FAS as part of                 successor-in-interest to an eligible                  this section for imports of qualifying
                                             the affidavit package scanned copies of                 person under paragraph (a)(4) of this                 wool previously described under each
                                             CBP Form 7501 ‘‘Entry Summary’’ for                     section, the person shall succeed to the              HTS subheading shall be added to the
                                             the relevant calculations made in the                   status of the eligible person and become              savings obtained for imports under the
                                             affidavit.                                              eligible for the payment.                             other HTS subheading (as applicable).
                                                (B) Indirect imports. Applicable to the                 (3) Qualifying wool. The term                         (4) Duty compensation payment
                                             calendar year immediately preceding                     ‘‘qualifying wool’’ means imported wool               amount. The sum obtained in paragraph
                                             payment, an eligible person that                        yarn of the kind described in                         (c)(3) of this section shall equal the
                                             indirectly imported qualifying worsted                  subheading 9902.51.13 of the 2014 HTS,                annual duty compensation payment for
                                             wool fabric is required to submit to FAS                and imported wool fiber or wool top of                the eligible person for the applicable
                                             as part of the affidavit package invoices               the kind described in subheading                      calendar year.
                                             from third party brokers as required in                 9902.51.14 of the 2014 HTS, that, during                 (5) Exception for 2015 payment. In the
                                             the affidavit.                                          the calendar year immediately                         case of the 2015 payment, for purposes
                                                (3) Production of garments or                        preceding the payment was                             of the calculation component described
                                             manufacturing of qualifying worsted                        (i) Imported, directly or indirectly, by           in paragraph (c)(2) of this section the
                                             wool fabric—(i) Production of                           an eligible person (or a successor-in-                duty rate applicable in 2015 shall be
                                             garments—(A) In general. When                           interest) into the U.S.; and                          deemed the duty rate actually paid in
                                             reporting the annual dollar value and                      (ii) Manufactured by the eligible                  2014. The reason for this exception for
                                             quantity of imported qualifying worsted                 person in the U.S.                                    the 2015 payment is that 2014 is both
                                             wool fabric, and the annual dollar value                   (4) Successor-in-interest. The term                the last year in which the duty
                                             and quantity of the qualifying worsted                  ‘‘successor-in-interest’’ means a person              suspension was still in effect, and is
                                             wool fabric that was cut and sewn, an                   that is eligible to claim a payment under             also the calendar year immediately
                                             eligible person may either have cut and                 this section as if the person were the                preceding the payment (the payment is
                                             sewn the wool on its own behalf or had                  original eligible manufacturer, without               in 2015). As a result, for the 2015
                                             another person cut and sew the wool on                  regard to section 3727, title 31, U.S.                payment, a proxy is necessary for the
                                             behalf of the eligible person, provided                 Code because of                                       higher duty rate in the calendar year
                                             the eligible person owned the wool at                      (i) An assignment of the claim;                    immediately preceding the payment.
                                             the time it was cut and sewn.                              (ii) An assignment of the eligible                    (d) Annual affidavit required—(1) In
                                                (B) Applicability. This paragraph                    person’s right to manufacture under the               general. An eligible person applying for
                                             applies to wool of the kind described in                same trade name; or                                   a payment under this section shall
                                             subheadings 9902.51.11 and 9902.51.15                      (iii) A reorganization of the eligible             comply with all applicable reporting
                                             of the 2014 HTS.                                        person.                                               requirements described in this section
                                                (ii) Manufacturing of qualifying                        (b) Import duties. The duties on                   and § 1471.10.
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                                             worsted wool fabric—(A) In general.                     imports of qualifying wool were                          (2) Specific business information—(i)
                                             When reporting the annual dollar value                  suspended in their entirety in section                Imports and production. An eligible
                                             and quantity of imported qualifying                     503 of the Trade and Development Act                  person shall, for the calendar year
                                             worsted wool fabric, and the annual                     of 2000. The suspension of the duties                 immediately preceding the payment,
                                             dollar value and quantity of the                        for both HTS subheadings of qualifying                report the actual dollar value and the
                                             qualifying worsted wool fabric that was                 wool was extended through December                    actual quantity of:


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                                             12332               Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Rules and Regulations

                                                (A) Imports into the U.S. of qualifying                Dated: February 25, 2015.                           the FAA, Transport Airplane
                                             wool by the eligible person; and                        Phil C. Karsting,                                     Directorate, 1601 Lind Avenue SW.,
                                                (B) Such qualifying wool that was                    Administrator, Foreign Agricultural Service,          Renton, WA. For information on the
                                             manufactured in the U.S. by the eligible                and Vice President, Commodity Credit                  availability of this material at the FAA,
                                                                                                     Corporation.                                          call 425–227–1221. It is also available
                                             person.
                                                                                                     [FR Doc. 2015–04385 Filed 3–6–15; 8:45 am]            on the Internet at http://
                                                (ii) Direct and indirect importers—(A)                                                                     www.regulations.gov by searching for
                                                                                                     BILLING CODE 3410–10–P
                                             In general. Eligible persons that import                                                                      and locating Docket No. FAA–2014–
                                             qualifying wool through a third party                                                                         0347.
                                             broker are considered to be indirect
                                             importers of the qualifying wool.                       DEPARTMENT OF TRANSPORTATION                          Examining the AD Docket
                                             Persons that directly import qualifying                 Federal Aviation Administration                         You may examine the AD docket on
                                             wool and pay the import duty for such                                                                         the Internet at http://
                                             wool are considered to be direct                        14 CFR Part 39                                        www.regulations.gov by searching for
                                             importers of the qualifying wool.                                                                             and locating Docket No. FAA–2014–
                                                                                                     [Docket No. FAA–2014–0347; Directorate
                                                (B) Reported dollar value. Eligible                  Identifier 2013–NM–173–AD; Amendment
                                                                                                                                                           0347; or in person at the Docket
                                             persons must state in their annual                      39–18109; AD 2015–04–07]                              Management Facility between 9 a.m.
                                             affidavit whether, in the calendar year                                                                       and 5 p.m., Monday through Friday,
                                             immediately preceding the payment,                      RIN 2120–AA64                                         except Federal holidays. The AD docket
                                             they were direct or indirect importers,                                                                       contains this AD, the regulatory
                                                                                                     Airworthiness Directives; The Boeing                  evaluation, any comments received, and
                                             and the dollar value of the imported
                                                                                                     Company Airplanes                                     other information. The address for the
                                             qualifying wool. The reported dollar
                                             value of imports by indirect importers                  AGENCY:  Federal Aviation                             Docket Office (phone: 800–647–5527) is
                                             will be subject to a 10% reduction.                     Administration (FAA), DOT.                            Docket Management Facility, U.S.
                                                (C) Affirmation. An eligible person                  ACTION: Final rule.                                   Department of Transportation, Docket
                                             shall annually affirm in the affidavit                                                                        Operations, M–30, West Building
                                             that, in the calendar year immediately                  SUMMARY:   We are adopting a new                      Ground Floor, Room W12–140, 1200
                                             preceding the payment, the eligible                     airworthiness directive (AD) for certain              New Jersey Avenue SE., Washington,
                                             person                                                  The Boeing Company Model 767–200                      DC 20590.
                                                                                                     and –300 series airplanes equipped with               FOR FURTHER INFORMATION CONTACT:
                                                (1) Directly or indirectly imported the              Pratt & Whitney Model JT9D or PW4000                  Philip Sheridan, Senior Aerospace
                                             qualifying wool into the U.S.;                          engines. This AD was prompted by a                    Engineer, Systems and Equipment
                                                (2) Manufactured the qualifying wool                 report of several cases of low hydraulic              Branch, ANM–130S, FAA, Seattle
                                             in the U.S.; and                                        pressure or loss of electrical power to               Aircraft Certification Office, 1601 Lind
                                                (3) Imported qualifying wool from the                the alternating current motor pump                    Avenue SW., Renton, WA 98057–3356;
                                             country of origin identified in the                     (ACMP) on the left engine. This AD                    phone: 425–917–6441; fax: 425–917–
                                             affidavit.                                              requires inspecting for damage of the                 6590; email: philip.sheridan@faa.gov.
                                                                                                     wiring bundles in the left engine’s strut             SUPPLEMENTARY INFORMATION:
                                                (iii) Import documentation—(A)                       and corrective actions if necessary, and
                                             Direct imports. Applicable to the                       installing new wire support brackets                  Discussion
                                             calendar year immediately preceding                     and bundle clamps. We are issuing this
                                             the payment, an eligible person that                                                                             We issued a notice of proposed
                                                                                                     AD to detect and correct chafed wire                  rulemaking (NPRM) to amend 14 CFR
                                             directly imported qualifying wool is                    bundles due to rubbing against structure
                                             required to submit to FAS as part of the                                                                      part 39 by adding an AD that would
                                                                                                     or a hydraulic piping elbow, which                    apply to certain The Boeing Company
                                             affidavit package scanned copies of CBP                 could result in electrical arcing in a
                                             Form 7501 ‘‘Entry Summary’’ for the                                                                           Model 767–200 and –300 series
                                                                                                     flammable fluid leakage zone, and                     airplanes equipped with Pratt &
                                             relevant calculations made in the                       provide a possible ignition source for
                                             affidavit.                                                                                                    Whitney Model JT9D or PW4000
                                                                                                     fuel vapors and hydraulic fluids. Ignited             engines. The NPRM published in the
                                                (B) Indirect imports. Applicable to the              fuel vapors or hydraulic fluid in an area             Federal Register on June 30, 2014 (79
                                             calendar year immediately preceding                     without a fire detection or suppression               FR 36680). The NPRM was prompted by
                                             the payment, an eligible person that                    system could result in an uncontained                 a report of several cases of low
                                             indirectly imported qualifying wool is                  engine strut fire and structural damage               hydraulic pressure or loss of electrical
                                             required to submit to FAS as part of the                to the engine strut.                                  power to the ACMP on the left engine.
                                             affidavit package invoices from third                   DATES: This AD is effective April 13,                 The NPRM proposed to require
                                             party brokers for the relevant                          2015.                                                 inspecting for damage of the wiring
                                             calculations made in the affidavit.                        The Director of the Federal Register               bundles in the left engine’s strut and
                                                (3) Manufacture of qualifying wool.                  approved the incorporation by reference               corrective actions if necessary, and
                                             When reporting the annual dollar value                  of certain publications listed in this AD             installing new wire support brackets
                                             and quantity of imported qualifying                     as of April 13, 2015.                                 and bundle clamps. We are issuing this
                                             wool, and the annual dollar value and                   ADDRESSES: For service information                    AD to detect and correct chafed wire
                                             quantity of the qualifying wool that was                identified in this AD, contact Boeing                 bundles due to rubbing against structure
                                             manufactured, an eligible person may                    Commercial Airplanes, Attention: Data                 or a hydraulic piping elbow, which
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                                             either have manufactured the qualifying                 & Services Management, P.O. Box 3707,                 could result in electrical arcing in a
                                             wool on its own behalf or had another                   MC 2H–65, Seattle, WA 98124–2207;                     flammable fluid leakage zone, and
                                             person manufacture the qualifying wool,                 telephone 206–544–5000, extension 1;                  provide a possible ignition source for
                                             provided the eligible person owned the                  fax 206–766–5680; Internet https://                   fuel vapors and hydraulic fluids. Ignited
                                             qualifying wool at the time of                          www.myboeingfleet.com. You may view                   fuel vapors or hydraulic fluid in an area
                                             manufacture.                                            this referenced service information at                without a fire detection or suppression


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Document Created: 2015-12-18 12:05:27
Document Modified: 2015-12-18 12:05:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule with request for comments.
DatesThis final rule is effective March 9, 2015. Comments concerning this final rule must be received by April 8, 2015, to be assured consideration. We are issuing this final rule without prior notice and opportunity for comment.
ContactBenjamin Chan, Import Policies and Export Reporting Division, Office of Trade Policy, Foreign Agricultural Service, U.S. Department of Agriculture; email: [email protected]; 202-720-8877.
FR Citation80 FR 12321 
RIN Number0551-AA86
CFR AssociatedAgricultural Commodities and Imports

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