80_FR_50385 80 FR 50225 - Paper and Paper-Based Packaging Promotion, Research and Information Order; Late Payment and Interest Charges on Past Due Assessments

80 FR 50225 - Paper and Paper-Based Packaging Promotion, Research and Information Order; Late Payment and Interest Charges on Past Due Assessments

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 160 (August 19, 2015)

Page Range50225-50228
FR Document2015-20437

This proposal invites comments on prescribing late payment and interest charges on past due assessments under the Paper and Paper- Based Packaging Promotion, Research and Information Order (Order). The Order is administered by the Paper and Packaging Board (Board) with oversight by the U.S. Department of Agriculture (USDA). Under the Order, assessments are collected from manufacturers and importers and used for projects to promote paper and paper-based packaging. This proposal would implement authority contained in the Order that allows the Board to collect late payment and interest charges on past due assessments. Two additional changes are proposed to reflect current practices and update the Order and regulations. This action would contribute to effective administration of the program and was unanimously recommended by the Board.

Federal Register, Volume 80 Issue 160 (Wednesday, August 19, 2015)
[Federal Register Volume 80, Number 160 (Wednesday, August 19, 2015)]
[Proposed Rules]
[Pages 50225-50228]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20437]


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

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

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


Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / 
Proposed Rules

[[Page 50225]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1222

[Document Number AMS-FV-14-0082]


Paper and Paper-Based Packaging Promotion, Research and 
Information Order; Late Payment and Interest Charges on Past Due 
Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposal invites comments on prescribing late payment and 
interest charges on past due assessments under the Paper and Paper-
Based Packaging Promotion, Research and Information Order (Order). The 
Order is administered by the Paper and Packaging Board (Board) with 
oversight by the U.S. Department of Agriculture (USDA). Under the 
Order, assessments are collected from manufacturers and importers and 
used for projects to promote paper and paper-based packaging. This 
proposal would implement authority contained in the Order that allows 
the Board to collect late payment and interest charges on past due 
assessments. Two additional changes are proposed to reflect current 
practices and update the Order and regulations. This action would 
contribute to effective administration of the program and was 
unanimously recommended by the Board.

DATES: Comments must be received by October 19, 2015.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments may be submitted on the Internet at: 
http://www.regulations.gov or to the Promotion and Economics Division, 
Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., 
Room 1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 
205-2800. All comments should reference the document number and the 
date and page number of this issue of the Federal Register and will be 
made available for public inspection, including name and address, if 
provided, in the above office during regular business hours. Comments 
may also be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Marlene Betts, Marketing Specialist, 
Promotion and Economics Division, Fruit and Vegetable Program, AMS, 
USDA, 1400 Independence Avenue SW., Room 1406-S, Stop 0244, Washington, 
DC 20250-0244; telephone: (202) 720-9915; or electronic mail: 
[email protected].

SUPPLEMENTARY INFORMATION: This proposal is issued under the Order (7 
CFR part 1222). The Order is authorized under the Commodity Promotion, 
Research and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget has waived the review process.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation would not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect 
or preempt any other Federal or State law authorizing promotion or 
research relating to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, the 
USDA will issue a ruling on the petition. The 1996 Act provides that 
the district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    This proposal invites comments on prescribing late payment and 
interest charges on past due assessments under the Order. The Order is 
administered by the Board with oversight by USDA. Under the Order, 
assessments are collected from manufacturers and importers and used for 
projects to promote paper and paper-based packaging. This proposal 
would implement authority contained in the Order and the 1996 Act that 
allows the Board to collect late payment and interest charges on past 
due assessments. This action was unanimously recommended by the Board 
and would contribute to effective administration of the program.
    Section 1222.52(a) of the Order specifies that the Board's programs 
and expenses shall be paid by assessments on manufacturers and 
importers and other income or funds available to the Board. Paragraph 
(g) of that section specifies further that when a manufacturer or 
importer fails to pay the assessment within 60 calendar days of the 
date it is due, the Board may

[[Page 50226]]

impose a late payment charge and interest. The late payment charge and 
rate of interest must be prescribed in regulations issued by the 
Secretary. All late assessments would be subject to the specified late 
payment charge and interest.
    The Order became effective on January 23, 2014. Assessment 
collection began on March 1, 2014. Manufacturers and importers must pay 
their assessments owed to the Board by the 30th calendar day of the 
month following the end of the quarter in which the paper and paper-
based packaging was manufactured or imported. For example, assessments 
for paper manufactured or imported during the months of January, 
February and March are due to the Board by April 30.
    Entities that domestically manufacture or import to the United 
States less than 100,000 short tons of paper and paper-based packaging 
in a year are exempt from paying assessments. If an entity is both a 
manufacturer and an importer, the entity's combined quantity of paper 
and paper-based packaging manufactured and imported during a marketing 
year counts toward the 100,000 short ton exemption.
    Assessment funds are used for promotion activities that are 
intended to benefit all industry members. Thus, it is important that 
all assessed entities pay their assessments in a timely manner. 
Entities who fail to pay their assessments on time would be able to 
reap the benefits of Board programs at the expense of others. In 
addition, they would be able to utilize funds for their own use that 
should otherwise be paid to the Board to finance Board programs.

Board Recommendation

    At a meeting held September 25, 2014, the Board unanimously 
recommended implementing the Order authority regarding late payment and 
interest charges. Specifically, the Board recommended that a late 
payment charge be imposed on any manufacturer or importer who fails to 
make timely remittance to the Board of the total assessments for which 
such manufacturer or importer is liable. The late payment charge would 
be imposed on any assessments not received within 60 calendar days of 
the date they are due. This one-time late payment charge would be equal 
to 10 percent of the assessments due before interest charges have 
accrued.
    The Board also recommended that an interest rate of 1\1/2\ percent 
per month be added to the outstanding balance, including any late 
payment charge and accrued interest, of any accounts for which payment 
has not been received within 60 calendar days after the assessments are 
due. Interest would continue to accrue monthly until the outstanding 
balance is paid to the Board.
    This action is expected to help facilitate program administration 
by providing an incentive for entities to remit their assessments in a 
timely manner, with the intent of creating a fair and equitable process 
among all assessed entities. Accordingly, a new Subpart C would be 
added to the Order for provisions implementing the paper and paper-
based packaging Order, and a new Sec.  1222.520 would be added to 
Subpart C.
    This proposal would also make two additional changes to the Order. 
This proposed rule would revise the term Board as defined in Sec.  
1222.2 from the Paper and Paper-Based Packaging Board to the Paper and 
Packaging Board. This change would simplify the term and bring the 
Order in line with current industry use. Conforming changes would also 
be made to Sec.  1222.40(a) and the heading immediately prior to this 
section where the term is also referenced. In addition, in Sec.  
1222.108, the OMB control number would be changed from 0581-NEW to 
0581-0281, the control number assigned by the OMB.

Initial Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the proposed rule on 
small entities. Accordingly, AMS has considered the economic impact of 
this action on such entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(manufacturers and importers) as those having annual receipts of no 
more than $7.0 million.
    According to the Board, there are 69 manufacturers in the United 
States that produce the types of paper and paper-based packaging 
covered under the Order. Using an average price of $806 per short 
ton,\1\ a manufacturer who produces less than about 8,680 short tons of 
paper and paper-based packaging per year would be considered a small 
entity. It is estimated that no more than four manufacturers produced 
less than 8,680 short tons per year. Thus, the majority of 
manufacturers would not be considered small businesses.
---------------------------------------------------------------------------

    \1\ Industry sources do not publish information on average price 
for paper and paper-based packaging. A reasonable estimate for 
average price of paper and paper-based packaging is the value per 
ton of paper and paper-based packaging exports. According to U.S. 
Census data, the average value of paper and paper-based packaging 
exports in 2014 was approximately $806 per short ton.
---------------------------------------------------------------------------

    Based on U.S. Customs and Border Protection (Customs) data, it is 
estimated that in 2014 there were 2,800 importers of paper and paper-
based packaging. Ninety importers, or about 3 percent, imported more 
than $7.0 million worth of paper and paper-based packaging. Thus, the 
majority of importers would be considered small entities. However, all 
of the 20 entities that imported 100,000 short tons or more (the 
Order's exemption threshold) also imported more than $7.0 million worth 
of paper and paper-based packaging. Therefore, none of the 20 importers 
covered under the Order would be considered small businesses.
    Based on domestic production of approximately 66.1 million short 
tons in 2014 and an average price of $806 per short ton, the domestic 
paper and paper-based packaging industry is valued at approximately 
$53.3 billion. According to Customs data, the value of paper and paper-
based packaging imports in 2014 was about $5.9 billion.
    This proposal invites comments on prescribing late payment and 
interest charges on past due assessments under the Order. The Order is 
administered by the Board with oversight by USDA. Under the Order, 
assessments are collected from manufacturers and importers and used for 
projects to promote paper and paper-based packaging. This rule would 
add a new Sec.  1222.520 that would specify a late payment charge of 10 
percent of the assessments due and interest at a rate of 1\1/2\ percent 
per month on the outstanding balance, including any late payment charge 
and accrued interest. This section would be included in a new Subpart 
C--Provisions for Implementing the Paper and Paper-Based Packaging 
Promotion, Research and Information Order. This action was unanimously 
recommended by the Board and is authorized under Sec.  1222.52(g) of 
the Order and section 517(e) of the 1996 Act. In addition, two 
additional changes are proposed to reflect current practices and update 
the Order and regulations. These changes are: (1) Revising the name of 
the Board

[[Page 50227]]

from the Paper and Paper-Based Packaging Board to the Paper and 
Packaging Board; and (2) the OMB control number would be changed from 
0581-NEW to 0581-0281, the control number assigned by the OMB.
    Regarding the economic impact of this proposed rule on affected 
entities, this action would impose no costs on manufacturers and 
importers who pay their assessments on time. It would merely provide an 
incentive for entities to remit their assessments in a timely manner. 
For all entities who are delinquent in paying assessments, both large 
and small, the charges would be applied the same. As for the impact on 
the industry as a whole, this action would help facilitate program 
administration by providing an incentive for entities to remit their 
assessments in a timely manner, with the intent of creating a fair and 
equitable process among all assessed entities.
    Additionally, as previously mentioned, the Order provides for an 
exemption for entities that domestically manufacture or import less 
than 100,000 short tons annually. It is estimated that 24 out of the 69 
domestic manufacturers, or 35 percent, produce less than 100,000 short 
tons per year and are thus exempt from paying assessments under the 
Order. Of the 2,800 importers of paper and paper packaging, it is 
estimated that 2,780, or 99 percent, import less than 100,000 short 
tons per year and are also exempt from paying assessments. Thus, about 
45 domestic manufacturers and 20 importers pay assessments under the 
Order.
    The alternative to this proposed action would be to maintain the 
status quo and not impose late payment and interest charges on past due 
assessments. However, the Board determined that implementing these 
charges would help facilitate program administration by encouraging 
entities to pay their assessments in a timely manner. The Board 
reviewed the late payment and interest charges applied by other 
research and promotion programs and concluded that a 10 percent late 
payment charge and interest at a rate of 1\1/2\ percent per month on 
the outstanding balance would be appropriate.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
that are imposed by the Order have been approved previously under OMB 
control number 0581-0281. This proposed rule would not result in a 
change to the information collection and recordkeeping requirements 
previously approved and would impose no additional reporting and 
recordkeeping burden on manufacturers and importers of paper and paper-
based packaging.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this proposed rule.
    AMS is committed to complying with the E-Government Act to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Regarding outreach efforts, the Board met on September 25, 2014, 
and unanimously made its recommendation. The Board's meetings, 
including meetings held via teleconference, are open to the public and 
interested persons are invited to participate and express their views.
    We have performed this initial RFA regarding the impact of this 
proposed action on small entities and we invite comments concerning 
potential effects of this action on small businesses.
    While this proposed rule set forth below has not received the 
approval of USDA, it has been determined that it is consistent with and 
would effectuate the purposes of the 1996 Act.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received in response to 
this proposed rule by the date specified will be considered prior to 
finalizing this action.

List of Subjects in 7 CFR Part 1222

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Paper and paper-based packaging 
promotion, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1222 is 
proposed to be amended as follows:

PART 1222--PAPER AND PAPER-BASED PACKAGING PROMOTION, RESEARCH AND 
INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1222 continues to read as 
follows:

     Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.

0
2. Section 1222.2 is revised to read as follows:


Sec.  1222.2  Board.

    Board means the Paper and Packaging Board established pursuant to 
Sec.  1222.40, or such other name as recommended by the Board and 
approved by the Department.
0
3. Revise the undesignated center heading preceding Sec.  1222.40 to 
read as follows:
PAPER AND PACKAGING BOARD
0
4. Amend Sec.  1222.40 by revising the first sentence of paragraph (a) 
to read as follows:


Sec.  1222.40  Establishment and membership.

    (a) Establishment of the Board. There is hereby established a Paper 
and Packaging Board to administer the terms and provisions of this 
Order. * * *
* * * * *
0
5. Section 1222.108 is revised to read as follows:


Sec.  1222.108  OMB control number.

    The control number assigned to the information collection 
requirement in this subpart by the Office of Management and Budget 
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. is OMB 
control number 0581-0281.
0
7. Add subpart C, consisting of Sec.  1222.520, to read as follows:
Subpart C--Provisions Implementing the Paper and Paper-Based Packaging 
Promotion, Research and Information Order
Sec.
1222.520 Late payment and interest charges for past due assessments.


Sec.  1222.520  Late payment and interest charges for past due 
assessments.

    (a) A late payment charge shall be imposed on any manufacturer or 
importer who fails to make timely remittance to the Board of the total 
assessments for which such manufacturer or importer is liable. The late 
payment shall be imposed on any assessments not received within 60 
calendar days of the date they are due. This one-time late payment 
charge shall be 10 percent of the assessments due before interest 
charges have accrued.
    (b) In addition to the late payment charge, 1\1/2\ percent per 
month interest on the outstanding balance, including any late payment 
and accrued interest, will be added to any accounts for which payment 
has not been received by the Board within 60 calendar days after the 
assessments are due. Such interest will continue to accrue monthly 
until the outstanding balance is paid to the Board.


[[Page 50228]]


    Dated: August 13, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-20437 Filed 8-18-15; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                50225

                                                 Proposed Rules                                                                                                Federal Register
                                                                                                                                                               Vol. 80, No. 160

                                                                                                                                                               Wednesday, August 19, 2015



                                                 This section of the FEDERAL REGISTER                    date and page number of this issue of                 the 1996 Act (7 U.S.C. 7423) provides
                                                 contains notices to the public of the proposed          the Federal Register and will be made                 that it shall not affect or preempt any
                                                 issuance of rules and regulations. The                  available for public inspection,                      other Federal or State law authorizing
                                                 purpose of these notices is to give interested          including name and address, if                        promotion or research relating to an
                                                 persons an opportunity to participate in the            provided, in the above office during                  agricultural commodity.
                                                 rule making prior to the adoption of the final
                                                 rules.
                                                                                                         regular business hours. Comments may                     Under section 519 of the 1996 Act (7
                                                                                                         also be viewed at http://                             U.S.C. 7418), a person subject to an
                                                                                                         www.regulations.gov.                                  order may file a written petition with
                                                 DEPARTMENT OF AGRICULTURE                               FOR FURTHER INFORMATION CONTACT:                      USDA stating that an order, any
                                                                                                         Marlene Betts, Marketing Specialist,                  provision of an order, or any obligation
                                                 Agricultural Marketing Service                          Promotion and Economics Division,                     imposed in connection with an order, is
                                                                                                         Fruit and Vegetable Program, AMS,                     not established in accordance with the
                                                 7 CFR Part 1222                                         USDA, 1400 Independence Avenue                        law, and request a modification of an
                                                 [Document Number AMS–FV–14–0082]                        SW., Room 1406–S, Stop 0244,                          order or an exemption from an order.
                                                                                                         Washington, DC 20250–0244; telephone:                 Any petition filed challenging an order,
                                                 Paper and Paper-Based Packaging                         (202) 720–9915; or electronic mail:                   any provision of an order, or any
                                                 Promotion, Research and Information                     Marlene.Betts@ams.usda.gov.                           obligation imposed in connection with
                                                 Order; Late Payment and Interest                        SUPPLEMENTARY INFORMATION: This
                                                                                                                                                               an order, shall be filed within two years
                                                 Charges on Past Due Assessments                         proposal is issued under the Order (7                 after the effective date of an order,
                                                                                                         CFR part 1222). The Order is authorized               provision, or obligation subject to
                                                 AGENCY:  Agricultural Marketing Service,                                                                      challenge in the petition. The petitioner
                                                 USDA.                                                   under the Commodity Promotion,
                                                                                                         Research and Information Act of 1996                  will have the opportunity for a hearing
                                                 ACTION: Proposed rule.                                                                                        on the petition. Thereafter, the USDA
                                                                                                         (1996 Act) (7 U.S.C. 7411–7425).
                                                                                                                                                               will issue a ruling on the petition. The
                                                 SUMMARY:   This proposal invites                        Executive Order 12866 and Executive                   1996 Act provides that the district court
                                                 comments on prescribing late payment                    Order 13563                                           of the United States for any district in
                                                 and interest charges on past due                                                                              which the petitioner resides or conducts
                                                 assessments under the Paper and Paper-                     Executive Orders 12866 and 13563
                                                                                                         direct agencies to assess all costs and               business shall have the jurisdiction to
                                                 Based Packaging Promotion, Research                                                                           review a final ruling on the petition, if
                                                 and Information Order (Order). The                      benefits of available regulatory
                                                                                                         alternatives and, if regulation is                    the petitioner files a complaint for that
                                                 Order is administered by the Paper and                                                                        purpose not later than 20 days after the
                                                 Packaging Board (Board) with oversight                  necessary, to select regulatory
                                                                                                         approaches that maximize net benefits                 date of the entry of USDA’s final ruling.
                                                 by the U.S. Department of Agriculture
                                                 (USDA). Under the Order, assessments                    (including potential economic,                        Background
                                                 are collected from manufacturers and                    environmental, public health and safety
                                                                                                         effects, distributive impacts and equity).              This proposal invites comments on
                                                 importers and used for projects to                                                                            prescribing late payment and interest
                                                 promote paper and paper-based                           Executive Order 13563 emphasizes the
                                                                                                         importance of quantifying both costs                  charges on past due assessments under
                                                 packaging. This proposal would                                                                                the Order. The Order is administered by
                                                 implement authority contained in the                    and benefits, reducing costs,
                                                                                                         harmonizing rules and promoting                       the Board with oversight by USDA.
                                                 Order that allows the Board to collect                                                                        Under the Order, assessments are
                                                 late payment and interest charges on                    flexibility. This action has been
                                                                                                         designated as a ‘‘non-significant                     collected from manufacturers and
                                                 past due assessments. Two additional                                                                          importers and used for projects to
                                                 changes are proposed to reflect current                 regulatory action’’ under section 3(f) of
                                                                                                         Executive Order 12866. Accordingly,                   promote paper and paper-based
                                                 practices and update the Order and                                                                            packaging. This proposal would
                                                 regulations. This action would                          the Office of Management and Budget
                                                                                                         has waived the review process.                        implement authority contained in the
                                                 contribute to effective administration of                                                                     Order and the 1996 Act that allows the
                                                 the program and was unanimously                         Executive Order 13175                                 Board to collect late payment and
                                                 recommended by the Board.                                                                                     interest charges on past due
                                                                                                           This action has been reviewed in
                                                 DATES: Comments must be received by                     accordance with the requirements of                   assessments. This action was
                                                 October 19, 2015.                                       Executive Order 13175, Consultation                   unanimously recommended by the
                                                 ADDRESSES: Interested persons are                       and Coordination with Indian Tribal                   Board and would contribute to effective
                                                 invited to submit written comments                      Governments. The review reveals that                  administration of the program.
                                                 concerning this proposal. Comments                      this regulation would not have                          Section 1222.52(a) of the Order
                                                 may be submitted on the Internet at:                    substantial and direct effects on Tribal              specifies that the Board’s programs and
rmajette on DSK2VPTVN1PROD with PROPOSALS




                                                 http://www.regulations.gov or to the                    governments and would not have                        expenses shall be paid by assessments
                                                 Promotion and Economics Division,                       significant Tribal implications.                      on manufacturers and importers and
                                                 Fruit and Vegetable Program, AMS,                                                                             other income or funds available to the
                                                 USDA, 1400 Independence Avenue                          Executive Order 12988                                 Board. Paragraph (g) of that section
                                                 SW., Room 1406–S, Stop 0244,                              This proposal has been reviewed                     specifies further that when a
                                                 Washington, DC 20250–0244; facsimile:                   under Executive Order 12988, Civil                    manufacturer or importer fails to pay
                                                 (202) 205–2800. All comments should                     Justice Reform. It is not intended to                 the assessment within 60 calendar days
                                                 reference the document number and the                   have retroactive effect. Section 524 of               of the date it is due, the Board may


                                            VerDate Sep<11>2014   15:11 Aug 18, 2015   Jkt 235001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\19AUP1.SGM   19AUP1


                                                 50226               Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Proposed Rules

                                                 impose a late payment charge and                        which payment has not been received                    produces less than about 8,680 short
                                                 interest. The late payment charge and                   within 60 calendar days after the                      tons of paper and paper-based
                                                 rate of interest must be prescribed in                  assessments are due. Interest would                    packaging per year would be considered
                                                 regulations issued by the Secretary. All                continue to accrue monthly until the                   a small entity. It is estimated that no
                                                 late assessments would be subject to the                outstanding balance is paid to the                     more than four manufacturers produced
                                                 specified late payment charge and                       Board.                                                 less than 8,680 short tons per year.
                                                 interest.                                                 This action is expected to help                      Thus, the majority of manufacturers
                                                    The Order became effective on                        facilitate program administration by                   would not be considered small
                                                 January 23, 2014. Assessment collection                 providing an incentive for entities to                 businesses.
                                                 began on March 1, 2014. Manufacturers                   remit their assessments in a timely                       Based on U.S. Customs and Border
                                                 and importers must pay their                            manner, with the intent of creating a fair             Protection (Customs) data, it is
                                                 assessments owed to the Board by the                    and equitable process among all                        estimated that in 2014 there were 2,800
                                                 30th calendar day of the month                          assessed entities. Accordingly, a new                  importers of paper and paper-based
                                                 following the end of the quarter in                     Subpart C would be added to the Order                  packaging. Ninety importers, or about 3
                                                 which the paper and paper-based                         for provisions implementing the paper                  percent, imported more than $7.0
                                                 packaging was manufactured or                           and paper-based packaging Order, and a                 million worth of paper and paper-based
                                                 imported. For example, assessments for                  new § 1222.520 would be added to                       packaging. Thus, the majority of
                                                 paper manufactured or imported during                   Subpart C.                                             importers would be considered small
                                                 the months of January, February and                       This proposal would also make two                    entities. However, all of the 20 entities
                                                 March are due to the Board by April 30.                 additional changes to the Order. This                  that imported 100,000 short tons or
                                                    Entities that domestically                           proposed rule would revise the term                    more (the Order’s exemption threshold)
                                                 manufacture or import to the United                     Board as defined in § 1222.2 from the                  also imported more than $7.0 million
                                                 States less than 100,000 short tons of                  Paper and Paper-Based Packaging Board                  worth of paper and paper-based
                                                 paper and paper-based packaging in a                    to the Paper and Packaging Board. This                 packaging. Therefore, none of the 20
                                                 year are exempt from paying                             change would simplify the term and                     importers covered under the Order
                                                 assessments. If an entity is both a                     bring the Order in line with current                   would be considered small businesses.
                                                 manufacturer and an importer, the                       industry use. Conforming changes                          Based on domestic production of
                                                 entity’s combined quantity of paper and                 would also be made to § 1222.40(a) and                 approximately 66.1 million short tons in
                                                 paper-based packaging manufactured                      the heading immediately prior to this                  2014 and an average price of $806 per
                                                 and imported during a marketing year                    section where the term is also                         short ton, the domestic paper and paper-
                                                 counts toward the 100,000 short ton                     referenced. In addition, in § 1222.108,                based packaging industry is valued at
                                                 exemption.                                              the OMB control number would be                        approximately $53.3 billion. According
                                                    Assessment funds are used for                                                                               to Customs data, the value of paper and
                                                                                                         changed from 0581–NEW to 0581–0281,
                                                 promotion activities that are intended to                                                                      paper-based packaging imports in 2014
                                                                                                         the control number assigned by the
                                                 benefit all industry members. Thus, it is                                                                      was about $5.9 billion.
                                                                                                         OMB.
                                                 important that all assessed entities pay                                                                          This proposal invites comments on
                                                 their assessments in a timely manner.                   Initial Regulatory Flexibility Act                     prescribing late payment and interest
                                                 Entities who fail to pay their                          Analysis                                               charges on past due assessments under
                                                 assessments on time would be able to                      In accordance with the Regulatory                    the Order. The Order is administered by
                                                 reap the benefits of Board programs at                  Flexibility Act (RFA) (5 U.S.C. 601–                   the Board with oversight by USDA.
                                                 the expense of others. In addition, they                612), AMS is required to examine the                   Under the Order, assessments are
                                                 would be able to utilize funds for their                impact of the proposed rule on small                   collected from manufacturers and
                                                 own use that should otherwise be paid                   entities. Accordingly, AMS has                         importers and used for projects to
                                                 to the Board to finance Board programs.                 considered the economic impact of this                 promote paper and paper-based
                                                 Board Recommendation                                    action on such entities.                               packaging. This rule would add a new
                                                    At a meeting held September 25,                        The purpose of the RFA is to fit                     § 1222.520 that would specify a late
                                                 2014, the Board unanimously                             regulatory actions to the scale of                     payment charge of 10 percent of the
                                                 recommended implementing the Order                      businesses subject to such actions so                  assessments due and interest at a rate of
                                                 authority regarding late payment and                    that small businesses will not be                      11⁄2 percent per month on the
                                                 interest charges. Specifically, the Board               disproportionately burdened. The Small                 outstanding balance, including any late
                                                 recommended that a late payment                         Business Administration defines, in 13                 payment charge and accrued interest.
                                                 charge be imposed on any manufacturer                   CFR part 121, small agricultural                       This section would be included in a
                                                 or importer who fails to make timely                    producers as those having annual                       new Subpart C—Provisions for
                                                 remittance to the Board of the total                    receipts of no more than $750,000 and                  Implementing the Paper and Paper-
                                                 assessments for which such                              small agricultural service firms                       Based Packaging Promotion, Research
                                                 manufacturer or importer is liable. The                 (manufacturers and importers) as those                 and Information Order. This action was
                                                 late payment charge would be imposed                    having annual receipts of no more than                 unanimously recommended by the
                                                 on any assessments not received within                  $7.0 million.                                          Board and is authorized under
                                                 60 calendar days of the date they are                     According to the Board, there are 69                 § 1222.52(g) of the Order and section
                                                 due. This one-time late payment charge                  manufacturers in the United States that                517(e) of the 1996 Act. In addition, two
rmajette on DSK2VPTVN1PROD with PROPOSALS




                                                 would be equal to 10 percent of the                     produce the types of paper and paper-                  additional changes are proposed to
                                                 assessments due before interest charges                 based packaging covered under the                      reflect current practices and update the
                                                 have accrued.                                           Order. Using an average price of $806                  Order and regulations. These changes
                                                    The Board also recommended that an                   per short ton,1 a manufacturer who                     are: (1) Revising the name of the Board
                                                 interest rate of 11⁄2 percent per month be                1 Industry sources do not publish information on     and paper-based packaging exports. According to
                                                 added to the outstanding balance,                       average price for paper and paper-based packaging.     U.S. Census data, the average value of paper and
                                                 including any late payment charge and                   A reasonable estimate for average price of paper and   paper-based packaging exports in 2014 was
                                                 accrued interest, of any accounts for                   paper-based packaging is the value per ton of paper    approximately $806 per short ton.



                                            VerDate Sep<11>2014   15:11 Aug 18, 2015   Jkt 235001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\19AUP1.SGM   19AUP1


                                                                     Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Proposed Rules                                              50227

                                                 from the Paper and Paper-Based                          approved and would impose no                          § 1222.2    Board.
                                                 Packaging Board to the Paper and                        additional reporting and recordkeeping                   Board means the Paper and Packaging
                                                 Packaging Board; and (2) the OMB                        burden on manufacturers and importers                 Board established pursuant to § 1222.40,
                                                 control number would be changed from                    of paper and paper-based packaging.                   or such other name as recommended by
                                                 0581–NEW to 0581–0281, the control                        As with all Federal promotion                       the Board and approved by the
                                                 number assigned by the OMB.                             programs, reports and forms are                       Department.
                                                    Regarding the economic impact of this                periodically reviewed to reduce
                                                 proposed rule on affected entities, this                information requirements and                          ■ 3. Revise the undesignated center
                                                 action would impose no costs on                         duplication by industry and public                    heading preceding § 1222.40 to read as
                                                 manufacturers and importers who pay                     sector agencies. USDA has not                         follows:
                                                 their assessments on time. It would                     identified any relevant Federal rules                 PAPER AND PACKAGING BOARD
                                                 merely provide an incentive for entities                that duplicate, overlap, or conflict with             ■ 4. Amend § 1222.40 by revising the
                                                 to remit their assessments in a timely                  this proposed rule.
                                                 manner. For all entities who are                                                                              first sentence of paragraph (a) to read as
                                                                                                           AMS is committed to complying with                  follows:
                                                 delinquent in paying assessments, both                  the E-Government Act to promote the
                                                 large and small, the charges would be                   use of the Internet and other                         § 1222.40    Establishment and membership.
                                                 applied the same. As for the impact on                  information technologies to provide
                                                 the industry as a whole, this action                                                                             (a) Establishment of the Board. There
                                                                                                         increased opportunities for citizen
                                                 would help facilitate program                                                                                 is hereby established a Paper and
                                                                                                         access to Government information and
                                                 administration by providing an                                                                                Packaging Board to administer the terms
                                                                                                         services, and for other purposes.
                                                 incentive for entities to remit their                                                                         and provisions of this Order. * * *
                                                                                                           Regarding outreach efforts, the Board
                                                 assessments in a timely manner, with                    met on September 25, 2014, and                        *      *    *    *     *
                                                 the intent of creating a fair and equitable             unanimously made its recommendation.                  ■ 5. Section 1222.108 is revised to read
                                                 process among all assessed entities.                    The Board’s meetings, including                       as follows:
                                                    Additionally, as previously                          meetings held via teleconference, are
                                                 mentioned, the Order provides for an                    open to the public and interested                     § 1222.108    OMB control number.
                                                 exemption for entities that domestically                persons are invited to participate and
                                                 manufacture or import less than 100,000                                                                         The control number assigned to the
                                                                                                         express their views.                                  information collection requirement in
                                                 short tons annually. It is estimated that
                                                                                                           We have performed this initial RFA                  this subpart by the Office of
                                                 24 out of the 69 domestic
                                                                                                         regarding the impact of this proposed                 Management and Budget pursuant to the
                                                 manufacturers, or 35 percent, produce
                                                                                                         action on small entities and we invite                Paperwork Reduction Act of 1995, 44
                                                 less than 100,000 short tons per year
                                                                                                         comments concerning potential effects                 U.S.C. is OMB control number 0581–
                                                 and are thus exempt from paying
                                                                                                         of this action on small businesses.                   0281.
                                                 assessments under the Order. Of the
                                                                                                           While this proposed rule set forth
                                                 2,800 importers of paper and paper                                                                            ■ 7. Add subpart C, consisting of
                                                                                                         below has not received the approval of
                                                 packaging, it is estimated that 2,780, or                                                                     § 1222.520, to read as follows:
                                                                                                         USDA, it has been determined that it is
                                                 99 percent, import less than 100,000
                                                 short tons per year and are also exempt                 consistent with and would effectuate                  Subpart C—Provisions Implementing the
                                                                                                         the purposes of the 1996 Act.                         Paper and Paper-Based Packaging
                                                 from paying assessments. Thus, about                                                                          Promotion, Research and Information Order
                                                 45 domestic manufacturers and 20                          A 60-day comment period is provided
                                                 importers pay assessments under the                     to allow interested persons to respond                Sec.
                                                                                                         to this proposal. All written comments                1222.520 Late payment and interest
                                                 Order.                                                                                                             charges for past due assessments.
                                                    The alternative to this proposed                     received in response to this proposed
                                                 action would be to maintain the status                  rule by the date specified will be                    § 1222.520 Late payment and interest
                                                 quo and not impose late payment and                     considered prior to finalizing this                   charges for past due assessments.
                                                 interest charges on past due                            action.
                                                 assessments. However, the Board                                                                                  (a) A late payment charge shall be
                                                                                                         List of Subjects in 7 CFR Part 1222                   imposed on any manufacturer or
                                                 determined that implementing these
                                                 charges would help facilitate program                     Administrative practice and                         importer who fails to make timely
                                                 administration by encouraging entities                  procedure, Advertising, Consumer                      remittance to the Board of the total
                                                 to pay their assessments in a timely                    information, Marketing agreements,                    assessments for which such
                                                 manner. The Board reviewed the late                     Paper and paper-based packaging                       manufacturer or importer is liable. The
                                                 payment and interest charges applied by                 promotion, Reporting and                              late payment shall be imposed on any
                                                 other research and promotion programs                   recordkeeping requirements.                           assessments not received within 60
                                                 and concluded that a 10 percent late                      For the reasons set forth in the                    calendar days of the date they are due.
                                                 payment charge and interest at a rate of                preamble, 7 CFR part 1222 is proposed                 This one-time late payment charge shall
                                                 11⁄2 percent per month on the                           to be amended as follows:                             be 10 percent of the assessments due
                                                 outstanding balance would be                                                                                  before interest charges have accrued.
                                                 appropriate.                                            PART 1222—PAPER AND PAPER-                               (b) In addition to the late payment
                                                    In accordance with the Paperwork                     BASED PACKAGING PROMOTION,                            charge, 11⁄2 percent per month interest
                                                 Reduction Act of 1995 (44 U.S.C.                        RESEARCH AND INFORMATION                              on the outstanding balance, including
rmajette on DSK2VPTVN1PROD with PROPOSALS




                                                 Chapter 35), the information collection                 ORDER                                                 any late payment and accrued interest,
                                                 and recordkeeping requirements that are                                                                       will be added to any accounts for which
                                                 imposed by the Order have been                          ■ 1. The authority citation for 7 CFR                 payment has not been received by the
                                                 approved previously under OMB                           part 1222 continues to read as follows:               Board within 60 calendar days after the
                                                 control number 0581–0281. This                            Authority: 7 U.S.C. 7411–7425; 7 U.S.C.             assessments are due. Such interest will
                                                 proposed rule would not result in a                     7401.                                                 continue to accrue monthly until the
                                                 change to the information collection and                ■ 2. Section 1222.2 is revised to read as             outstanding balance is paid to the
                                                 recordkeeping requirements previously                   follows:                                              Board.


                                            VerDate Sep<11>2014   15:11 Aug 18, 2015   Jkt 235001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\19AUP1.SGM   19AUP1


                                                 50228               Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Proposed Rules

                                                   Dated: August 13, 2015.                               Agency name and docket number FSIS–                   produces ‘‘roasters,’’ comments received
                                                 Rex A. Barnes,                                          2015–0026. Comments received in                       in response to a September 3, 2003,
                                                 Associate Administrator.                                response to this docket will be made                  proposed rule to amend the poultry
                                                 [FR Doc. 2015–20437 Filed 8–18–15; 8:45 am]             available for public inspection and                   classes (68 FR 55902), and comments
                                                 BILLING CODE 3410–02–P                                  posted without change, including any                  received in response to a 2009
                                                                                                         personal information, to http://                      supplemental proposed rule in which
                                                                                                         www.regulations.gov.                                  the Agency re-proposed to amend the
                                                 DEPARTMENT OF AGRICULTURE                                  Docket: For access to background                   ‘‘roaster’’ standard to establish an age
                                                                                                         documents or comments received, go to                 range from 8 to 12 weeks and to provide
                                                 Food Safety and Inspection Service                      the FSIS Docket Room at Patriot’s Plaza               for a RTC carcass weight (74 FR 3337,
                                                                                                         3, 355 E St. SW., Room 8–136A,                        July 13, 2009). The 2011 final rule
                                                 9 CFR Part 381                                          Washington, DC between 8:00 a.m. and                  became effective on January 1, 2014, the
                                                 [Docket No. FSIS–2015–0026]                             4:30 p.m., Monday through Friday.                     uniform compliance date for FSIS
                                                                                                         FOR FURTHER INFORMATION CONTACT:                      labeling regulations issued between
                                                 Classes of Poultry                                      Rosalyn Murphy-Jenkins, Director, FSIS                January 1 2011 and December 31, 2012
                                                                                                         Labeling and Program Delivery Division,               (75 FR 71344, November 23, 2010).
                                                 AGENCY:  Food Safety and Inspection
                                                 Service, USDA.                                          Phone: (301) 504–0878, Fax: (202) 245–                NCC Petition
                                                                                                         4795.
                                                 ACTION: Notice of proposed rulemaking.
                                                                                                         SUPPLEMENTARY INFORMATION:                               On November 18, 2013—before the
                                                 SUMMARY:    The Food Safety and                                                                               January 1, 2014, effective date for the
                                                 Inspection Service (FSIS) is proposing                  Background                                            final rule—the National Chicken
                                                 to amend the definition and standard of                    The Poultry Products Inspection Act                Council (NCC) submitted a petition
                                                 identity for the ‘‘roaster’’ or ‘‘roasting              (PPIA) prohibits the distribution of                  requesting that FSIS amend the
                                                 chicken’’ poultry class to better reflect               poultry products that are adulterated or              definition and standard of identity for
                                                 the characteristics of ‘‘roaster’’ chickens             misbranded (21 U.S.C. 458). The PPIA                  the ‘‘roaster’’ chicken class to remove
                                                 in the market today. ‘‘Roasters’’ or                    also authorizes the Secretary of                      the 8-week minimum age requirement
                                                 ‘‘roasting chickens’’ are described in                  Agriculture to prescribe, among other                 and to increase the RTC carcass weight
                                                 terms of the age and ready-to-cook                      things, definitions and standards of                  to 5.5 pounds. The petition is available
                                                 (RTC) carcass weight of the bird.                       identity or composition for poultry                   on the FSIS Web site at http://
                                                 Genetic changes and management                          products whenever the Secretary                       www.fsis.usda.gov/wps/wcm/connect/
                                                 techniques have continued to reduce the                 determines that such action is necessary              adf54579-7a18-4ab2-a9b5-
                                                 grow-out period and increased the RTC                   for the protection of the public (21                  88f1eef65332/Petition-National-
                                                 weight for this poultry class. Therefore,               U.S.C. 457(b)). Poultry classes were                  Chicken-Council.pdf?MOD=AJPERES.
                                                 FSIS is proposing to amend the                          established by USDA to aid in labeling                   The petition specifically asked FSIS
                                                 ‘‘roaster’’ definition to remove the 8-                 poultry. The classes were based                       to amend 9 CFR 381.170(a)(1)(iii) to
                                                 week minimum age criterion and                          primarily on the age and sex of the bird.             define a ‘‘roaster’’ as a young chicken
                                                 increase the RTC carcass weight from 5                  FSIS uses poultry class standards to                  (less than 12 weeks of age) of either sex,
                                                 pounds to 5.5 pounds. This action is                    ensure that poultry products are labeled              with an RTC carcass weight of 5.5
                                                 being taken in response to a petition                   in a truthful and non-misleading                      pounds or more, that is tender-meated
                                                 submitted by the National Chicken                       manner.                                               with soft, pliable, smooth-textured skin
                                                 Council.                                                   On November 3, 2011, FSIS published                and breastbone cartilage that may be
                                                 DATES: Comments must be received on                     a final rule to amend the definitions and             somewhat less flexible than that of a
                                                 or before October 19, 2015.                             standards for the U.S. classes of poultry             ‘‘broiler’’ or ‘‘fryer.’’ The petition also
                                                 ADDRESSES: FSIS invites interested                      listed in 9 CFR 381.170(a)(1)(76 FR                   requested that FSIS, as necessary,
                                                 persons to submit comments on this                      68058). The 2011 final rule lowered the               exercise enforcement discretion or stay
                                                 proposed rule. Comments may be                          age definitions for five classes of poultry           the effective date of the ‘‘roaster’’
                                                 submitted by one of the following                       and removed the word ‘‘usually’’ from                 definition scheduled to go into effect on
                                                 methods:                                                the age designation descriptions, so that             January 1, 2014.
                                                    Federal eRulemaking Portal: Go to                    the age designations are clear and
                                                                                                         enforceable (76 FR 68058, 68062). In                     According to the petition, the
                                                 http://www.regulations.gov. Follow the                                                                        ‘‘roaster’’ standard established in the
                                                 online instructions for submitting                      addition to lowering the age definition
                                                                                                         for the ‘‘roaster’’ class, the final rule also        2011 final rule would detract from the
                                                 comments. This Web site provides the                                                                          orderly and efficient marketing of
                                                 ability to type short comments directly                 defined a ‘‘roaster’’ based on a ready-to-
                                                                                                         cook (RTC) carcass weight.                            classes of poultry because companies
                                                 into the comment field on this Web page                                                                       would be unable to label and market
                                                 or attach a file for lengthier comments.                   A ‘‘roaster’’ or ‘‘roasting chicken’’
                                                                                                         (hereafter referred to as ‘‘roasters’’) is            chickens with the RTC weight and other
                                                    Mail, including CD–ROMs, etc.: Send
                                                                                                         defined in 9 CFR 381.170(1)(a)(iii) as ‘‘a            physical attributes of a ‘‘roaster’’ as
                                                 to Docket Clerk, U.S. Department of
                                                                                                         young chicken (between 8 and 12 weeks                 ‘‘roasters’’ because of the minimum age
                                                 Agriculture, Food Safety and Inspection
                                                                                                         of age), of either sex, with a ready-to-              requirement. The NCC asserted that
                                                 Service, Patriots Plaza 3, 1400
                                                                                                         cook carcass weight of 5 pounds or                    improvements in breeding and poultry
                                                 Independence Avenue SW., Mailstop
rmajette on DSK2VPTVN1PROD with PROPOSALS




                                                                                                         more, that is tender-meated with soft,                management techniques that have
                                                 3782, Room 8–163A, Washington, DC
                                                                                                         pliable, smooth-textured skin and                     continued since FSIS published the
                                                 20250–3700.
                                                    Hand- or courier-delivered submittals:               breastbone cartilage that is somewhat                 November 2011 final rule have enabled
                                                 Deliver to Patriots Plaza 3, 355 E Street               less flexible than that of a broiler or               producers to raise chickens with the
                                                 SW., Room 8–163A, Washington, DC                        fryer.’’ This definition was informed by              characteristics of roasters in under 8
                                                 20250–3700.                                             data collected by the USDA Agricultural               weeks.
                                                    Instructions: All items submitted by                 Marketing Service (AMS) from the                         NCC submitted additional data in
                                                 mail or electronic mail must include the                segment of the industry that routinely                support of its petition on December 16,


                                            VerDate Sep<11>2014   17:03 Aug 18, 2015   Jkt 235001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\19AUP1.SGM   19AUP1



Document Created: 2015-12-15 11:59:01
Document Modified: 2015-12-15 11:59:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by October 19, 2015.
ContactMarlene Betts, Marketing Specialist, Promotion and Economics Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 20250-0244; telephone: (202) 720-9915; or electronic mail: [email protected]
FR Citation80 FR 50225 
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Paper and Paper-Based Packaging Promotion and Reporting and Recordkeeping Requirements

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR