80_FR_80454 80 FR 80207 - Paper and Paper-Based Packaging Promotion, Research and Information Order; Late Payment and Interest Charges on Past Due Assessments

80 FR 80207 - 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 247 (December 24, 2015)

Page Range80207-80209
FR Document2015-32448

This rule prescribes 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 rule implements the authority contained in the Order that allows the Board to collect late payment and interest charges on past due assessments. Two additional changes are being made to reflect current practices and update the Order and regulations. This action contributes to effective administration of the program and was unanimously recommended by the Board.

Federal Register, Volume 80 Issue 247 (Thursday, December 24, 2015)
[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)]
[Rules and Regulations]
[Pages 80207-80209]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32448]



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Rules and Regulations
                                                Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
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under 50 titles pursuant to 44 U.S.C. 1510.

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Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / 
Rules and Regulations

[[Page 80207]]



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.

ACTION: Final rule.

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

SUMMARY: This rule prescribes 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 rule implements the 
authority contained in the Order that allows the Board to collect late 
payment and interest charges on past due assessments. Two additional 
changes are being made to reflect current practices and update the 
Order and regulations. This action contributes to effective 
administration of the program and was unanimously recommended by the 
Board.

DATES: Effective Date: January 25, 2016.

FOR FURTHER INFORMATION CONTACT: Marlene Betts, Marketing Specialist, 
Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 
20250-0244; telephone: (202) 720-9915; or electronic mail: 
Marlene.Betts@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule 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 (OMB) 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 will not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have a 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 rule prescribes 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 implements 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 will contribute to the 
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 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 
will 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

[[Page 80208]]

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. Entities who fail to pay 
their assessments on time could reap the benefits of Board programs at 
the expense of others. In addition, they could utilize funds for their 
own use that should otherwise be paid to the Board to finance Board 
programs. Thus, it is important that all assessed entities pay their 
assessments in a timely manner.

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 will 
be imposed on any assessments not received within 60 calendar days of 
the date they are due. This one-time late payment charge will 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 will 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 is added to 
the Order for provisions implementing the paper and paper-based 
packaging Order, and a new Sec.  1222.520 is added to Subpart C.
    This rule also makes two additional changes to the Order. This rule 
will 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 will simplify the term and bring the Order in line with 
current industry use. Conforming changes will 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 will be changed from 0581-NEW to 0581-0281, the control 
number assigned by the OMB.

Final 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 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 rule prescribes 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 will add a new Sec.  1222.520 that 
will 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 will 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 being 
made to reflect current practices and update the Order and regulations. 
These changes are: (1) Revising the name of the Board from the Paper 
and Paper-Based Packaging Board to the Paper and Packaging Board; and 
(2) the OMB control number will be changed from 0581-NEW to 0581-0281, 
the control number assigned by the OMB.
    Regarding the economic impact of this rule on affected entities, 
this action imposes no costs on manufacturers and importers who pay 
their assessments on time. It merely provides 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 
will be applied the same. As for the impact on the industry as a whole, 
this action will 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

[[Page 80209]]

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 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 will 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 rule will not result in a change to the 
information collection and recordkeeping requirements previously 
approved and will 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 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.
    A proposed rule concerning this action was published in the Federal 
Register on August 19, 2015 (80 FR 50225). The proposal was made 
available through the Internet by USDA and the Office of the Federal 
Register. A 60-day comment period ending October 19, 2015, was provided 
to allow interested persons to submit comments. One comment was 
received in favor of implementing the late payment and interest 
charges.
    After consideration of all relevant matters presented, including 
the information and recommendation submitted by the Board and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, is consistent with and will effectuate the 
purposes of the 1996 Act.

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 
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. Chapter 35 
is OMB control number 0581-0281 and 0505-0001.

0
6. 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 
charge 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.

    Dated: December 21, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-32448 Filed 12-23-15; 8:45 am]
BILLING CODE 3410-02-P



                                                                                                                                                                                           80207

                                            Rules and Regulations                                                                                         Federal Register
                                                                                                                                                          Vol. 80, No. 247

                                                                                                                                                          Thursday, December 24, 2015



                                            This section of the FEDERAL REGISTER                    1222). The Order is authorized under                  challenge in the petition. The petitioner
                                            contains regulatory documents having general            the Commodity Promotion, Research                     will have the opportunity for a hearing
                                            applicability and legal effect, most of which           and Information Act of 1996 (1996 Act)                on the petition. Thereafter, the USDA
                                            are keyed to and codified in the Code of                (7 U.S.C. 7411–7425).                                 will issue a ruling on the petition. The
                                            Federal Regulations, which is published under                                                                 1996 Act provides that the district court
                                            50 titles pursuant to 44 U.S.C. 1510.                   Executive Order 12866 and Executive
                                                                                                                                                          of the United States for any district in
                                                                                                    Order 13563
                                            The Code of Federal Regulations is sold by                                                                    which the petitioner resides or conducts
                                            the Superintendent of Documents. Prices of                 Executive Orders 12866 and 13563                   business shall have the jurisdiction to
                                            new books are listed in the first FEDERAL               direct agencies to assess all costs and               review a final ruling on the petition, if
                                            REGISTER issue of each week.                            benefits of available regulatory                      the petitioner files a complaint for that
                                                                                                    alternatives and, if regulation is                    purpose not later than 20 days after the
                                                                                                    necessary, to select regulatory                       date of the entry of USDA’s final ruling.
                                            DEPARTMENT OF AGRICULTURE                               approaches that maximize net benefits
                                                                                                    (including potential economic,                        Background
                                            Agricultural Marketing Service                          environmental, public health and safety                  This rule prescribes late payment and
                                                                                                    effects, distributive impacts and equity).            interest charges on past due assessments
                                            7 CFR Part 1222                                         Executive Order 13563 emphasizes the                  under the Order. The Order is
                                            [Document Number AMS–FV–14–0082]                        importance of quantifying both costs                  administered by the Board with
                                                                                                    and benefits, reducing costs,                         oversight by USDA. Under the Order,
                                            Paper and Paper-Based Packaging                         harmonizing rules and promoting                       assessments are collected from
                                            Promotion, Research and Information                     flexibility. This action has been                     manufacturers and importers and used
                                            Order; Late Payment and Interest                        designated as a ‘‘non-significant                     for projects to promote paper and paper-
                                            Charges on Past Due Assessments                         regulatory action’’ under section 3(f) of             based packaging. This rule implements
                                                                                                    Executive Order 12866. Accordingly,                   authority contained in the Order and the
                                            AGENCY:    Agricultural Marketing Service.              the Office of Management and Budget                   1996 Act that allows the Board to collect
                                            ACTION:   Final rule.                                   (OMB) has waived the review process.                  late payment and interest charges on
                                                                                                                                                          past due assessments. This action was
                                            SUMMARY:   This rule prescribes late                    Executive Order 13175
                                                                                                                                                          unanimously recommended by the
                                            payment and interest charges on past                      This action has been reviewed in                    Board and will contribute to the
                                            due assessments under the Paper and                     accordance with the requirements of                   effective administration of the program.
                                            Paper-Based Packaging Promotion,                        Executive Order 13175, Consultation                      Section 1222.52(a) of the Order
                                            Research and Information Order (Order).                 and Coordination with Indian Tribal                   specifies that the Board’s programs and
                                            The Order is administered by the Paper                  Governments. The review reveals that                  expenses shall be paid by assessments
                                            and Packaging Board (Board) with                        this regulation will not have substantial             on manufacturers and importers and
                                            oversight by the U.S. Department of                     and direct effects on Tribal governments              other income or funds available to the
                                            Agriculture (USDA). Under the Order,                    and would not have significant Tribal                 Board. Paragraph (g) of that section
                                            assessments are collected from                          implications.                                         specifies further that when a
                                            manufacturers and importers and used                                                                          manufacturer or importer fails to pay
                                                                                                    Executive Order 12988
                                            for projects to promote paper and paper-                                                                      the assessment within 60 calendar days
                                            based packaging. This rule implements                      This rule has been reviewed under                  of the date it is due, the Board may
                                            the authority contained in the Order                    Executive Order 12988, Civil Justice                  impose a late payment charge and
                                            that allows the Board to collect late                   Reform. It is not intended to have a                  interest. The late payment charge and
                                            payment and interest charges on past                    retroactive effect. Section 524 of the                rate of interest must be prescribed in
                                            due assessments. Two additional                         1996 Act (7 U.S.C. 7423) provides that                regulations issued by the Secretary. All
                                            changes are being made to reflect                       it shall not affect or preempt any other              late assessments will be subject to the
                                            current practices and update the Order                  Federal or State law authorizing                      specified late payment charge and
                                            and regulations. This action contributes                promotion or research relating to an                  interest.
                                            to effective administration of the                      agricultural commodity.                                  The Order became effective on
                                            program and was unanimously                                Under section 519 of the 1996 Act (7               January 23, 2014. Assessment collection
                                            recommended by the Board.                               U.S.C. 7418), a person subject to an                  began on March 1, 2014. Manufacturers
                                                                                                    order may file a written petition with                and importers must pay their
                                            DATES: Effective Date: January 25, 2016.
                                                                                                    USDA stating that an order, any                       assessments owed to the Board by the
                                            FOR FURTHER INFORMATION CONTACT:
                                                                                                    provision of an order, or any obligation              30th calendar day of the month
                                            Marlene Betts, Marketing Specialist,                    imposed in connection with an order, is               following the end of the quarter in
                                            Promotion and Economics Division,                       not established in accordance with the                which the paper and paper-based
                                            Specialty Crops Program, AMS, USDA,                     law, and request a modification of an                 packaging was manufactured or
                                            1400 Independence Avenue SW., Room                      order or an exemption from an order.                  imported. For example, assessments for
tkelley on DSK3SPTVN1PROD with RULES




                                            1406–S, Stop 0244, Washington, DC                       Any petition filed challenging an order,              paper manufactured or imported during
                                            20250–0244; telephone: (202) 720–9915;                  any provision of an order, or any                     the months of January, February and
                                            or electronic mail: Marlene.Betts@                      obligation imposed in connection with                 March are due to the Board by April 30.
                                            ams.usda.gov.                                           an order, shall be filed within two years                Entities that domestically
                                            SUPPLEMENTARY INFORMATION:    This rule                 after the effective date of an order,                 manufacture or import to the United
                                            is issued under the Order (7 CFR part                   provision, or obligation subject to                   States less than 100,000 short tons of


                                       VerDate Sep<11>2014   17:12 Dec 23, 2015   Jkt 238001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\24DER1.SGM   24DER1


                                            80208            Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Rules and Regulations

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


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                                                             Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Rules and Regulations                                            80209

                                            24 out of the 69 domestic                                  A proposed rule concerning this                     § 1222.108   OMB control number.
                                            manufacturers, or 35 percent, produce                    action was published in the Federal                     The control number assigned to the
                                            less than 100,000 short tons per year                    Register on August 19, 2015 (80 FR                    information collection requirement in
                                            and are thus exempt from paying                          50225). The proposal was made                         this subpart by the Office of
                                            assessments under the Order. Of the                      available through the Internet by USDA                Management and Budget pursuant to the
                                            2,800 importers of paper and paper                       and the Office of the Federal Register. A             Paperwork Reduction Act of 1995, 44
                                            packaging, it is estimated that 2,780, or                60-day comment period ending October                  U.S.C. Chapter 35 is OMB control
                                            99 percent, import less than 100,000                     19, 2015, was provided to allow                       number 0581–0281 and 0505–0001.
                                            short tons per year and are also exempt                  interested persons to submit comments.                ■ 6. Add Subpart C, consisting of
                                            from paying assessments. Thus, about                     One comment was received in favor of                  § 1222.520, to read as follows:
                                            45 domestic manufacturers and 20                         implementing the late payment and
                                            importers pay assessments under the                      interest charges.                                     Subpart C—Provisions Implementing the
                                            Order.                                                                                                         Paper and Paper-Based Packaging
                                                                                                       After consideration of all relevant                 Promotion, Research and Information Order
                                               The alternative to this action would                  matters presented, including the
                                            be to maintain the status quo and not                    information and recommendation                        Sec.
                                                                                                                                                           1222.520 Late payment and interest
                                            impose late payment and interest                         submitted by the Board and other                           charges for past due assessments.
                                            charges on past due assessments.                         available information, it is hereby found
                                            However, the Board determined that                       that this rule, as hereinafter set forth, is          § 1222.520 Late payment and interest
                                            implementing these charges will help                     consistent with and will effectuate the               charges for past due assessments.
                                            facilitate program administration by                     purposes of the 1996 Act.                                (a) A late payment charge shall be
                                            encouraging entities to pay their                                                                              imposed on any manufacturer or
                                                                                                     List of Subjects in 7 CFR Part 1222
                                            assessments in a timely manner. The                                                                            importer who fails to make timely
                                            Board reviewed the late payment and                        Administrative practice and                         remittance to the Board of the total
                                            interest charges applied by other                        procedure, Advertising, Consumer                      assessments for which such
                                            research and promotion programs and                      information, Marketing agreements,                    manufacturer or importer is liable. The
                                            concluded that a 10 percent late                         Paper and paper-based packaging                       late payment shall be imposed on any
                                            payment charge and interest at a rate of                 promotion, Reporting and                              assessments not received within 60
                                            11⁄2 percent per month on the                            recordkeeping requirements.                           calendar days of the date they are due.
                                            outstanding balance would be                               For the reasons set forth in the                    This one-time late payment charge shall
                                            appropriate.                                             preamble, 7 CFR part 1222 is amended                  be 10 percent of the assessments due
                                               In accordance with the Paperwork                      as follows:                                           before interest charges have accrued.
                                            Reduction Act of 1995 (44 U.S.C.                                                                                  (b) In addition to the late payment
                                            Chapter 35), the information collection                  PART 1222—PAPER AND PAPER-                            charge, 11⁄2 percent per month interest
                                            and recordkeeping requirements that are                  BASED PACKAGING PROMOTION,                            on the outstanding balance, including
                                            imposed by the Order have been                           RESEARCH AND INFORMATION                              any late payment charge and accrued
                                            approved previously under OMB                            ORDER                                                 interest, will be added to any accounts
                                            control number 0581–0281. This rule                                                                            for which payment has not been
                                            will not result in a change to the                       ■ 1. The authority citation for 7 CFR                 received by the Board within 60
                                            information collection and                               part 1222 continues to read as follows:               calendar days after the assessments are
                                            recordkeeping requirements previously                      Authority: 7 U.S.C. 7411–7425; 7 U.S.C.             due. Such interest will continue to
                                            approved and will impose no additional                   7401.                                                 accrue monthly until the outstanding
                                            reporting and recordkeeping burden on                                                                          balance is paid to the Board.
                                                                                                     ■ 2. Section 1222.2 is revised to read as
                                            manufacturers and importers of paper                                                                             Dated: December 21, 2015.
                                                                                                     follows:
                                            and paper-based packaging.
                                                                                                                                                           Rex A. Barnes,
                                               As with all Federal promotion                         § 1222.2    Board.
                                                                                                                                                           Associate Administrator, Agricultural
                                            programs, reports and forms are                            Board means the Paper and Packaging                 Marketing Service.
                                            periodically reviewed to reduce                          Board established pursuant to § 1222.40,              [FR Doc. 2015–32448 Filed 12–23–15; 8:45 am]
                                            information requirements and                             or such other name as recommended by                  BILLING CODE 3410–02–P
                                            duplication by industry and public                       the Board and approved by the
                                            sector agencies. USDA has not                            Department.
                                            identified any relevant Federal rules
                                                                                                     ■ 3. Revise the undesignated center                   DEPARTMENT OF ENERGY
                                            that duplicate, overlap, or conflict with
                                            this rule.                                               heading preceding § 1222.40 to read as
                                               AMS is committed to complying with                    follows:                                              10 CFR Parts 429 and 430
                                            the E-Government Act to promote the                      Paper and Packaging Board                             [Docket No. EERE–2014–BT–TP–0007]
                                            use of the Internet and other
                                            information technologies to provide                      ■  4. Amend § 1222.40 by revising the                 RIN 1904–AD17
                                            increased opportunities for citizen                      first sentence of paragraph (a) to read as
                                                                                                     follows:                                              Energy Conservation Program: Test
                                            access to Government information and
                                                                                                                                                           Procedures for Ceiling Fan Light Kits
                                            services, and for other purposes.                        § 1222.40    Establishment and membership.
                                               Regarding outreach efforts, the Board                                                                       AGENCY:  Office of Energy Efficiency and
                                                                                                        (a) Establishment of the Board. There
                                            met on September 25, 2014, and                                                                                 Renewable Energy, Department of
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                                                                                                     is hereby established a Paper and
                                            unanimously made its recommendation.                                                                           Energy.
                                                                                                     Packaging Board to administer the terms
                                            The Board’s meetings, including                                                                                ACTION: Final rule.
                                                                                                     and provisions of this Order. * * *
                                            meetings held via teleconference, are
                                            open to the public and interested                        *      *    *    *     *                              SUMMARY:   On October 31, 2014, the U.S.
                                            persons are invited to participate and                   ■ 5. Section 1222.108 is revised to read              Department of Energy (DOE) published
                                            express their views.                                     as follows:                                           a notice of proposed rulemaking (NOPR)


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Document Created: 2015-12-24 02:25:57
Document Modified: 2015-12-24 02:25:57
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactMarlene Betts, Marketing Specialist, Promotion and Economics Division, Specialty Crops 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 80207 
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Paper and Paper-Based Packaging Promotion and Reporting and Recordkeeping Requirements

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