80 FR 76873 - Cotton Board Rules and Regulations: Amending Importer Line-Item De Minimis

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 238 (December 11, 2015)

Page Range		76873-76875
FR Document		2015-31116

The Agricultural Marketing Service (AMS) proposes to amend the Cotton Board Rules and Regulations to remove the cotton import de minimis provision. The Cotton Research and Promotion (R&P) Program assesses U.S. cotton producers and importers of cotton and cotton- containing products. Importers are exempt from paying the cotton import assessment (known commonly among importers as the ``cotton fee'') if a line item on U.S. Customs and Border Protection (CBP) documentation is $2.00 or less. The exemption was initially established to lessen the administrative burden of collecting an import assessment, which was originally estimated to be $2.00 per line item, in instances in which the transactions costs of the collection would exceed the actual value of the assessment. However, technological advances in the CBP documentation process significantly reduced the transactions costs associated with collecting import assessments, and CBP has since stopped charging USDA for the processing and collecting of assessments. Given that transactions costs no longer exceed assessment rates of $2.00 or less, AMS proposes to remove this de minimis provision from the regulations. In addition, the definition of cotton with respect to procedures for conducting the sign-up period would also be modified.

Federal Register, Volume 80 Issue 238 (Friday, December 11, 2015)

[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)]
[Proposed Rules]
[Pages 76873-76875]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31116]


========================================================================
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. 238 / Friday, December 11, 2015 / 
Proposed Rules

[[Page 76873]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[Doc. No. AMS-CN-14-0037]


Cotton Board Rules and Regulations: Amending Importer Line-Item 
De Minimis

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) proposes to amend the 
Cotton Board Rules and Regulations to remove the cotton import de 
minimis provision. The Cotton Research and Promotion (R&P) Program 
assesses U.S. cotton producers and importers of cotton and cotton-
containing products. Importers are exempt from paying the cotton import 
assessment (known commonly among importers as the ``cotton fee'') if a 
line item on U.S. Customs and Border Protection (CBP) documentation is 
$2.00 or less. The exemption was initially established to lessen the 
administrative burden of collecting an import assessment, which was 
originally estimated to be $2.00 per line item, in instances in which 
the transactions costs of the collection would exceed the actual value 
of the assessment. However, technological advances in the CBP 
documentation process significantly reduced the transactions costs 
associated with collecting import assessments, and CBP has since 
stopped charging USDA for the processing and collecting of assessments. 
Given that transactions costs no longer exceed assessment rates of 
$2.00 or less, AMS proposes to remove this de minimis provision from 
the regulations. In addition, the definition of cotton with respect to 
procedures for conducting the sign-up period would also be modified.

DATES: Comments must be received on or before January 11, 2016.

ADDRESSES: Written comments may be submitted to the addresses specified 
below. All comments will be made available to the public. Please do not 
include any personally identifiable information (such as name, address, 
or other contact information) or confidential business information that 
you do not want publically disclosed. All comments may be posted on the 
Internet and can be retrieved by most Internet search engines. Comments 
may be submitted anonymously.
    Comments, identified by AMS-CN-14-0037, may be submitted 
electronically through the Federal eRulemaking Portal at http://www.regulations.gov. Please follow the instructions for submitting 
comments. In addition, comments may be submitted by mail or hand 
delivery to Cotton Research and Promotion Staff, Cotton and Tobacco 
Program, AMS, USDA, 100 Riverside Parkway, Suite 101, Fredericksburg, 
Virginia, 22406. Written comments should be submitted in triplicate. 
All comments received will be made available for public inspection at 
Cotton and Tobacco Program, AMS, USDA, 100 Riverside Parkway, Suite 
101, Fredericksburg, Virginia, 22406. A copy of this notice may be 
found at: www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Program, AMS, USDA, 100 Riverside 
Parkway, Suite 101, Fredericksburg, Virginia, 22406, telephone (540) 
361-2726, facsimile (540) 361-1199, or email at 
Shethir.Riva@ams.usda.gov.

SUPPLEMENTARY INFORMATION:

A. Background

    Amendments to the Cotton Research and Promotion Act (7 U.S.C. 2101-
2118) (Act) were enacted by Congress under Subtitle G of Title XIX of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (Pub. L. 
101-624, 104 stat. 3909, November 28, 1990). These amendments contained 
two provisions that authorize changes in the funding procedures for the 
Cotton Research and Promotion Program. These provisions provide for: 
(1) The assessment of imported cotton and cotton products; and (2) 
termination of refunds to cotton producers. (Prior to the 1990 
amendments to the Act, producers could request assessment refunds.)
    As amended, the Cotton Research and Promotion Order (7 CFR part 
1205) (Order) was approved by producers and importers voting in a 
referendum held July 17-26, 1991, and the amended Order was published 
in the Federal Register on December 10, 1991, (56 FR 64470). A proposed 
rule implementing the amended Order was published in the Federal 
Register on December 17, 1991, (56 FR 65450). Implementing rules were 
published on July 1 and 2, 1992, (57 FR 29181 and 57 FR 29431, 
respectively).
    The total value of assessment levied on cotton imports is the sum 
of two parts. The first part of the assessment is based on the weight 
of cotton imported--levied at a rate of $1 per bale of cotton, which is 
equivalent to 500 pounds, or $1 per 226.8 kilograms of cotton. The 
second part of the import assessment (referred to as the supplemental 
assessment) is based on the value of imported cotton lint or the cotton 
contained in imported cotton products--levied at a rate of five-tenths 
of one percent of the value of domestically produced cotton. The 
current assessment on imported cotton is $0.012013 per kilogram of 
imported cotton.
    The Cotton Research and Promotion Act provides that ``Any de 
minimis figure as established under this paragraph shall be such as to 
minimize the burden in administering the assessment provision but still 
provide for the maximum participation of imports of cotton in the 
assessment provisions of this chapter.'' 7 U.S.C. 2116(c)(2). The 
Import Assessment Table in paragraph (b)(3) of Sec.  1205.510 of the 
Cotton Research and Promotion Rules and Regulations indicates the total 
assessment rate ($ per kilogram) due for each Harmonized Tariff 
Schedule (HTS) number that is subject to assessment. Subparagraph (i) 
of this same paragraph provides for an exemption from assessment for 
any line item entry of cotton appearing on U.S. Customs and Border 
Protection (CBP) entry documentation whose calculated assessment is two 
dollars ($2.00) or less. This de minimis exemption was established to 
minimize the administrative burden of collecting import assessments, 
which was originally estimated to be $2.00 per line item, where 
administrative costs would

[[Page 76874]]

exceed the actual value of the assessment.
    The de minimis figure is an estimate of administrative burden, 
which is equivalent to the transactions costs of collecting the cotton 
fee. The de minimis provision was necessary to avoid instances where 
the transactions costs of collecting the cotton fee exceeded the cotton 
fee being collected.
    In January 2014, AMS became aware of CBP's automation processes in 
connection with documenting and collecting assessments. CBP indicated 
that the documentation and collection process is automated and costs 
have been significantly decreased. Taking into account technological 
advancements in the fee collection process, CBP no longer charges USDA 
for the collection of assessments on agricultural commodities. This has 
eliminated the administrative burden associated with the collection of 
assessments.
    AMS proposes to strike subparagraph (i) under paragraph Sec.  
1205.510(b)(3) of the Cotton Research and Promotion Rules and 
Regulations and append to the paragraph section the language currently 
in subparagraph (ii). This proposed action reflects the technological 
efficiencies of the CBP import documentation process by eliminating the 
de minimis provisions in the regulations, and, therefore, helps to 
ensure that the assessments collected on imported cotton and the cotton 
content of imported products would be the same as those paid on 
domestically produced cotton. In addition, AMS proposes to modify the 
definition of cotton in Sec.  1205.12 to include imported cotton that 
previously was exempted due to the de minimis exemption. With this 
action, importers who previously imported de minimis amounts of cotton 
may now be eligible to participate in the sign-up period for a 
continuance referendum that would determine whether a continuance 
referendum is favored.

B. Regulatory Impact Analysis

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to access 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 and therefore has 
not been reviewed by the Office of Management and Budget.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
The Cotton Research and Promotion Act (7 U.S.C. 2101-2118) (Act) 
provides that administrative proceedings must be exhausted before 
parties may file suit in court. Under section 12 of the Act, any person 
subject to an order may file with the Secretary of Agriculture 
(Secretary) a petition stating that the order, any provision of the 
plan, or any obligation imposed in connection with the order is not in 
accordance with law and requesting a modification of the order or to be 
exempted therefrom. Such person is afforded the opportunity for a 
hearing on the petition. After the hearing, the Secretary would rule on 
the petition. The Act provides that the District Court of the United 
States in any district in which the person is an inhabitant, or has his 
principal place of business, has jurisdiction to review the Secretary's 
ruling, provided a complaint is filed within 20 days from the date of 
the entry of ruling.

Regulatory Flexibility Act and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS has examined the economic impact of this rule on small 
entities. The purpose of the RFA is to fit regulatory actions to the 
scale of businesses subject to such action so that small businesses 
will not be unduly or 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 (importers) as having receipts of no 
more than $7,000,000. In 2013, an estimated 17,000 importers are 
subject to the rules and regulations issued pursuant to the Cotton 
Research and Promotion Order. Most are considered small entities as 
defined by the Small Business Administration.
    This rule would only affect importers of cotton and cotton-
containing products whose calculated assessment for any line item entry 
of cotton appearing on a CBP entry document whose calculated assessment 
is two dollars ($2.00) or less. While data allowing for estimates of 
the number of importers that would be impacted does not exist, it is 
estimated that a very small portion of the estimated 17,000 importers 
would be affected by eliminating the de minimis exemption. The 
additional burden placed on those importers would be limited to two 
dollars ($2.00) per line item entry that would otherwise have qualified 
for the exemption. Importers are currently required to self-report on 
all line items being imported, therefore no additional transactions 
costs or administrative burden would be borne by these importers. Such 
importers may now be eligible to participate in a sign-up period to 
determine whether they and eligible producers favor the conduct of 
referendum on the continuance of the 1991 amendments to the Order.
    There are no Federal rules that duplicate, overlap, or conflict 
with this proposed rule.
    In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act (PRA) (44 U.S.C. chapter 35) the information collection 
requirements contained in the regulation to be amended have been 
previously approved by OMB and were assigned control number 0581-0093, 
National Research, Promotion, and Consumer Information Programs. This 
proposed rule does not result in a change to the information collection 
and recordkeeping requirements previously approved.
    A 30-day comment period is provided to comment on the changes to 
the Cotton Board Rules and Regulations proposed herein. This period is 
deemed appropriate because this rule would help ensure that the 
assessments collected on imported cotton and the cotton content of 
imported products would be the same as those paid on domestically 
produced cotton. Accordingly, the change in this rulemaking, if 
adopted, should be implemented as soon as possible.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, AMS proposes to amend 7 
CFR part 1205 as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

0
1. The authority citation for part 1205 continues to read as follows:

    Authority:  7 U.S.C. 2101-2118.

0
2. Revise Sec.  1205.12 to read as follows:

[[Page 76875]]

Sec.  1205.12  Cotton.

    The term cotton means all Upland cotton harvested in the United 
States and all imports of Upland cotton, including the Upland cotton 
content of products derived thereof.
0
3. In Sec.  1205.510, revise paragraph (b)(3) introductory text and 
remove paragraphs (b)(3)(i) and (ii).
    The revision reads as follows:


Sec.  1205.510  Levy of assessments.

* * * * *
    (b) * * *
    (3) The following table contains Harmonized Tariff Schedule (HTS) 
classification numbers and corresponding conversion factors and 
assessments. The left column of the following table indicates the HTS 
classifications of imported cotton and cotton-containing products 
subject to assessment. The center column indicates the conversion 
factor for determining the raw fiber content for each kilogram of the 
HTS. HTS numbers for raw cotton have no conversion factor in the table. 
The right column indicates the total assessment per kilogram of the 
article assessed. In the event that any HTS number subject to 
assessment is changed and such change is merely a replacement of a 
previous number and has no impact on the physical properties, 
description, or cotton content of the product involved, assessments 
will continue to be collected based on the new number.
* * * * *

    Dated: December 7, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-31116 Filed 12-10-15; 8:45 am]
 BILLING CODE 3410-02-P

Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Proposed Rules 76875

§ 1205.12 Cotton. 200, –300, –500, and –600 series street address for the Docket Operations
The term cotton means all Upland airplanes. AD 2014–03–14 currently office (telephone 800–647–5527) is in
cotton harvested in the United States requires removing bulb-type the ADDRESSES section. Comments will
and all imports of Upland cotton, maintenance lights; installing a drain be available in the AD docket shortly
including the Upland cotton content of mast on certain airplanes; and installing after receipt.
products derived thereof. muffs on connecting bleed elements on FOR FURTHER INFORMATION CONTACT:
■ 3. In § 1205.510, revise paragraph certain airplanes. Since we issued AD Vladimir Ulyanov, Aerospace Engineer,
(b)(3) introductory text and remove 2014–03–14, we have determined that International Branch, ANM–116,
paragraphs (b)(3)(i) and (ii). additional actions are necessary to Transport Airplane Directorate, FAA,
The revision reads as follows: address the identified unsafe condition 1601 Lind Avenue SW., Renton, WA
for certain airplanes on which muffs are 98057–3356; telephone 425–227–1138;
§ 1205.510 Levy of assessments. installed. For certain Model A340–200 fax 425–227–1149.
* * * * * and –300 series airplanes, this proposed SUPPLEMENTARY INFORMATION:
(b) * * * AD would also require replacing certain
(3) The following table contains insulation sleeves with new insulation Comments Invited
Harmonized Tariff Schedule (HTS) sleeves. We are proposing this AD to We invite you to send any written
classification numbers and prevent ignition sources inside fuel relevant data, views, or arguments about
corresponding conversion factors and tanks, which, in combination with this proposed AD. Send your comments
assessments. The left column of the flammable fuel vapors, could result in to an address listed under the
following table indicates the HTS fuel tank explosions and consequent ADDRESSES section. Include ‘‘Docket No.
classifications of imported cotton and loss of the airplane. FAA–2015–6547; Directorate Identifier
cotton-containing products subject to DATES: We must receive comments on 2014–NM–129–AD’’ at the beginning of
assessment. The center column this proposed AD by January 25, 2016. your comments. We specifically invite
indicates the conversion factor for comments on the overall regulatory,
ADDRESSES: You may send comments by
determining the raw fiber content for economic, environmental, and energy
any of the following methods:
each kilogram of the HTS. HTS numbers aspects of this proposed AD. We will
• Federal eRulemaking Portal: Go to
for raw cotton have no conversion factor consider all comments received by the
http://www.regulations.gov. Follow the
in the table. The right column indicates closing date and may amend this
instructions for submitting comments.
the total assessment per kilogram of the • Fax: 202–493–2251. proposed AD based on those comments.
article assessed. In the event that any • Mail: U.S. Department of We will post all comments we
HTS number subject to assessment is Transportation, Docket Operations, M– receive, without change, to http://
changed and such change is merely a 30, West Building Ground Floor, Room www.regulations.gov, including any
replacement of a previous number and W12–140, 1200 New Jersey Avenue SE., personal information you provide. We
has no impact on the physical Washington, DC 20590. will also post a report summarizing each
properties, description, or cotton • Hand Delivery: U.S. Department of substantive verbal contact we receive
content of the product involved, Transportation, Docket Operations, M– about this proposed AD.
assessments will continue to be 30, West Building Ground Floor, Room
collected based on the new number. Discussion
W12–140, 1200 New Jersey Avenue SE.,
* * * * * On January 31, 2014, we issued AD
Washington, DC, between 9 a.m. and 5
2014–03–14, Amendment 39–17752 (79
Dated: December 7, 2015. p.m., Monday through Friday, except
FR 9382, February 19, 2014). AD 2014–
Rex A. Barnes, Federal holidays.
03–14 requires actions intended to
Associate Administrator. For service information identified in
address an unsafe condition on all
[FR Doc. 2015–31116 Filed 12–10–15; 8:45 am]
this proposed AD, contact Airbus SAS,
Airbus Model A330–200 and –300 series
Airworthiness Office—EAL, 1 Rond
BILLING CODE 3410–02–P airplanes, and Model A340–200, –300,
Point Maurice Bellonte, 31707 Blagnac
–500, and –600 series airplanes.
Cedex, France; telephone +33 5 61 93 36
Since we issued AD 2014–03–14,
96; fax +33 5 61 93 45 80; email
DEPARTMENT OF TRANSPORTATION Amendment 39–17752 (79 FR 9382,
airworthiness.A330–A340@airbus.com;
February 19, 2014), the European
Internet http://www.airbus.com. You
Federal Aviation Administration Aviation Safety Agency (EASA), which
may view this referenced service
is the Technical Agent for the Member
information at the FAA, Transport
14 CFR Part 39 States of the European Union, has
Airplane Directorate, 1601 Lind Avenue
issued EASA Airworthiness Directive
[Docket No. FAA–2015–6547; Directorate SW., Renton, WA. For information on
2014–0148, dated June 13, 2014
Identifier 2014–NM–129–AD] the availability of this material at the
(referred to after this the Mandatory
FAA, call 425–227–1221.
RIN 2120–AA64 Continuing Airworthiness Information,
Examining the AD Docket or ‘‘the MCAI’’), to correct an unsafe
Airworthiness Directives; Airbus condition for the specified products.
You may examine the AD docket on
Airplanes The MCAI states:
the Internet at http://
AGENCY: Federal Aviation www.regulations.gov by searching for [Subsequent to accidents involving Fuel
jstallworth on DSK7TPTVN1PROD with PROPOSALS

Administration (FAA), DOT. and locating Docket No. FAA–2015– Tank Systems in flight and on ground] * * *,
6547; or in person at the Docket the FAA published Special Federal Aviation
ACTION: Notice of proposed rulemaking Regulation (SFAR) 88, and the Joint Aviation
(NPRM). Management Facility between 9 a.m.
Authorities (JAA) published Interim Policy
and 5 p.m., Monday through Friday, INT/POL/25/12.
SUMMARY: We propose to supersede except Federal holidays. The AD docket In response to these regulations, a global
Airworthiness Directive (AD) 2014–03– contains this proposed AD, the design review conducted by Airbus on the
14, for all Airbus Model A330–200 and regulatory evaluation, any comments A330 and A340 type design Section 19,
–300 series airplanes, and Model A340– received, and other information. The which is a flammable fluid leakage zone and

VerDate Sep<11>2014 14:54 Dec 10, 2015 Jkt 238001 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 E:\FR\FM\11DEP1.SGM 11DEP1

Document Created: 2018-03-02 09:12:37
Document Modified: 2018-03-02 09:12:37

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Comments must be received on or before January 11, 2016.
Contact		Shethir M. Riva, Chief, Research and Promotion Staff, Cotton and Tobacco Program, AMS, USDA, 100 Riverside Parkway, Suite 101, Fredericksburg, Virginia, 22406, telephone (540) 361-2726, facsimile (540) 361-1199, or email at [email protected]
FR Citation		80 FR 76873
CFR Associated		Advertising; Agricultural Research; Cotton; Marketing Agreements and Reporting and Recordkeeping Requirements

80 FR 76873 - Cotton Board Rules and Regulations: Amending Importer Line-Item De Minimis

DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Register Volume 80, Issue 238 (December 11, 2015)

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service