81_FR_39009 81 FR 38894 - Christmas Tree Promotion, Research, and Information Order; Late Payment and Interest Charges on Past Due Assessments

81 FR 38894 - Christmas Tree Promotion, Research, and Information Order; Late Payment and Interest Charges on Past Due Assessments

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 115 (June 15, 2016)

Page Range38894-38897
FR Document2016-14150

This rule prescribes late payment and interest charges on past due assessments under the Christmas Tree Promotion, Research, and Information Order (Order). The Order is administered by the Christmas Tree Promotion Board (Board) with oversight by the U.S. Department of Agriculture (USDA). Under the Order, assessments are collected from domestic producers and importers and used for research and promotion projects designed to maintain and expand the market for fresh cut Christmas trees. This rule implements authority contained in the Order that allows the Board to collect late payment and interest charges on past due assessments. Late payment and interest charges will begin to accrue on unpaid assessments beginning 30 days after the effective date of this rule. This action contributes to effective administration of the program. This rule also provides authority for the crop year and fiscal period to be changed through administrative action. These changes were unanimously recommended by the Board.

Federal Register, Volume 81 Issue 115 (Wednesday, June 15, 2016)
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38894-38897]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14150]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1214

[Document Number AMS-SC-15-0072]


Christmas Tree Promotion, Research, and Information Order; Late 
Payment and Interest Charges on Past Due Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule prescribes late payment and interest charges on past 
due assessments under the Christmas Tree Promotion, Research, and

[[Page 38895]]

Information Order (Order). The Order is administered by the Christmas 
Tree Promotion Board (Board) with oversight by the U.S. Department of 
Agriculture (USDA). Under the Order, assessments are collected from 
domestic producers and importers and used for research and promotion 
projects designed to maintain and expand the market for fresh cut 
Christmas trees. This rule implements authority contained in the Order 
that allows the Board to collect late payment and interest charges on 
past due assessments. Late payment and interest charges will begin to 
accrue on unpaid assessments beginning 30 days after the effective date 
of this rule. This action contributes to effective administration of 
the program. This rule also provides authority for the crop year and 
fiscal period to be changed through administrative action. These 
changes were unanimously recommended by the Board.

DATES: Effective June 16, 2016.

FOR FURTHER INFORMATION CONTACT: Victoria Carpenter, Marketing 
Specialist, Promotion and Economics Division, Specialty Crops Program, 
AMS, USDA, Stop 0244, 1400 Independence Avenue SW., Room 1406-S, 
Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile: (202) 
205-2800; or electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under the Order (7 CFR 
part 1214). 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 will 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 retroactive effect. Section 
524 of the 1996 Act 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, 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. The Order is administered by the Board with oversight by 
USDA. Under the Order, assessments are collected from domestic 
producers and importers and used for research and promotion projects 
designed to maintain and expand the market for fresh cut Christmas 
trees. 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 effective 
administration of the program.
    Section 1214.52(a) of the Order specifies that the funds to cover 
the Board's expenses shall be paid from assessments on producers and 
importers, donations from persons not subject to assessments, and from 
other funds available to the Board. Paragraphs (b) and (c) specify that 
the collection of assessments on Christmas trees that are cut and sold 
or imported will be the responsibility of the producer who produces the 
Christmas trees or causes them to be cut, or the importer who imports 
Christmas trees for marketing in the United States.
    Section 1214.52(e) specifies that ``a late payment charge, may be 
imposed on any producer or importer who fails to remit to the Board, 
the total amount for which any such producer or importer is liable on 
or before the due date established by the Board. In addition to the 
late payment charge, an interest charge may be imposed on the 
outstanding amount for which the producer or importer is liable. The 
rate for late payment and interest charges shall be specified by the 
Secretary through rulemaking.''
    The Order was implemented in November 2011, but immediately stayed. 
The stay was lifted on April 7, 2014, and the program is currently in 
effect. Domestic assessments were due February 15, 2016. This will be 
the first assessment collection by the Board. Importers will be 
responsible for paying the assessment directly to the Board 30 calendar 
days after importation. U.S. Customs and Border Protection (Customs) 
will not be collecting on imports for the 2015 season. Producers or 
importers who domestically produce or import less than 500 trees 
annually are exempt from assessment.
    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.
    Late payment and interest charges will begin to accrue on unpaid 
assessments beginning 30 days after the effective date of the final 
rule. A late payment charge of $250 will be applied to any unpaid 
assessments for producers and importers that are delinquent in paying 
their assessment. If the assessment is paid after February 15, but up 
to 29 days after the effective date of this final rule, no late payment 
charge will be imposed. The late payment charge will be increased to 
$500 after 90 days after the effective date of this final rule. 
Additionally, a 1.5 percent interest charge per month will be imposed 
on unpaid assessments and fees owed, beginning 30 days after the 
effective date of this final rule. The delay of the imposition of late 
payment and interest charges only applies to the initial period of 
assessment collection. Assessment funds are used by the Board for 
activities designed to benefit all industry members. Thus, it is 
important that all assessed entities pay their

[[Page 38896]]

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

    The Board met on July 17, 2015, and unanimously recommended 
specifying rates of late payment charges and interest on past due 
assessments in the Order's regulations. Specifically, the Board 
recommended that a late payment charge of $250 be applied to late 
assessments for producers and importers that are delinquent in paying 
their assessment 30 days after the due date. The late payment charge 
will increase to $500 after 90 days of delinquency. Additionally, a 1.5 
percent interest charge per month will be imposed on late assessments 
and fees owed, beginning 30 days after the assessment due date. This 
fee structure is not overtly burdensome on small producers or 
importers, but does create the incentive to promote timely payment of 
assessments due. This action contributes to the efficient 
administration of the program.
    This action will help facilitate program administration by 
providing an incentive for entities to remit 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 rules and regulations, and a new section 1214.520 is added to 
Subpart C.
    This rule also makes one additional change to the Order. This rule 
revises the definition of crop year and fiscal period as defined in 
sections 1214.5 and 1214.8, respectively. The Board recommended this 
change because USDA revised the crop year and fiscal period during the 
promulgation process from what was originally proposed by the industry. 
The Board wants the flexibility to change these dates if necessary. The 
terms crop year and fiscal period will be revised by adding language to 
allow the Board to change the crop year or fiscal period 
administratively through Board action.

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 this 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 (SBA) 
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 (producers and importers) as those having annual receipts 
of no more than $7.5 million.
    According to the 2012 Census of Agriculture published by the 
National Agricultural Statistics Service (NASS), it is estimated that 
there are 15,494 farms that sold cut Christmas trees in the United 
States. According to NASS, the value of cut Christmas trees sold in 
2012 was $808,644,000. Dividing that value by the number of farms 
yields an average annual producer revenue of $52,191. Therefore it is 
estimated that all farms that sold Christmas trees had revenue under 
$750,000.
    Likewise, based on Customs data, it is estimated there are 153 
importers of Christmas trees. Using 2014 Customs data, all importers 
import less than $7.5 million worth of Christmas trees annually. Thus, 
all domestic producers and importers of Christmas trees would be 
considered small entities.
    Regarding the value of the commodity, as mentioned above, based on 
2012 NASS Census of Agriculture data, the value of the domestic cut 
Christmas trees was about $808.6 million. According to Customs data, 
the value of 2014 imports was about $25.8 million.
    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 
producers and importers of Christmas trees that are cut and sold or 
imported.
    This rule will add a new section 1214.520 that will specify a late 
payment charge of $250 to be applied to late assessments for producers 
and importers that are delinquent in paying their assessment 30 days 
after the due date. The late payment charge will be increased to $500 
after 90 days of delinquency. Additionally, a 1.5 percent interest 
charge per month will be imposed on late assessments and fees owed, 
beginning 30 days after the assessment due date. This section will be 
included in a new Subpart C--Provisions Implementing the Christmas Tree 
Promotion, Research, and Information Order. This action was unanimously 
recommended by the Board and is authorized under section 1214.52(e) of 
the Order and section 517(e) of the 1996 Act.
    In addition, one other change is being made to the Order. It will 
revise the definition of crop year and fiscal period as defined in 
sections 1214.5 and 1214.8, respectively. The Board recommended this 
change because USDA revised the crop year and fiscal period during the 
promulgation process from what was originally proposed by the industry. 
The Board wants the flexibility to change these dates if necessary. The 
terms crop year and fiscal period will be revised by adding language to 
allow the Board to change the crop year or fiscal period 
administratively through Board action.
    Regarding the economic impact of this rule on affected entities, 
this action imposes no costs on producers 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 uniformly. 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 produce or import less than 500 Christmas 
trees.
    Regarding alternatives, one option to the action is to maintain the 
status quo and not prescribe late payment and interest charges for past 
due assessments. However, the Board determined that implementing such 
charges would help facilitate program administration by encouraging 
entities to pay their assessments in a timely manner. The Board 
reviewed rates of late payment and interest charges prescribed in other 
research and promotion programs and concluded that the late payment 
charge and the interest charge contained in this rule are 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 under OMB control 
number 0581-0093. This rule results in no changes to the information 
collection and recordkeeping requirements previously approved and 
imposes no additional reporting and recordkeeping burden on domestic 
producers and importers of Christmas trees.

[[Page 38897]]

    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. Finally, 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 July 17, 2015, and 
unanimously recommended these changes to the Order. All of 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 March 1, 2016 (81 FR 10530). The proposal was made 
available through the Internet by USDA and the Office of the Federal 
Register. A 15-day comment period ending March 16, 2016, was provided 
to allow interested persons to submit comments. No comments were 
received.
    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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because this is the initial year for 
the collection of assessments under the Order, on the 2015 harvest, and 
assessments were due on February 15, 2016. Importers are responsible 
for paying assessments directly to the Board 30 calendar days after 
importation. The Board would like to implement this incentive as soon 
as possible to facilitate the initial collection of assessments. 
Additionally, this action was unanimously recommended by the Board. 
Further, a 15-day comment period was provided for in the proposed rule 
and no comments were received.

List of Subjects in 7 CFR Part 1214

    Administrative practice and procedure, Advertising, Consumer 
information, Christmas trees, Marketing agreements, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1214 is 
amended as follows:

PART 1214--CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION 
ORDER

0
1. The authority citation for 7 CFR part 1214 continues to read as 
follows:

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


0
2. Section 1214.5 is revised to read as follows:


Sec.  1214.5  Crop year.

    Crop year means the period August 1 through July 31 or such other 
period approved by the Secretary.

0
3. Section 1214.8 is revised to read as follows:


Sec.  1214.8  Fiscal period.

    Fiscal period means the period August 1 through July 31 or such 
other period approved by the Secretary.

0
4. Subpart C, consisting of Sec.  1214.520, is added to read as 
follows:

Subpart C--Provisions Implementing the Christmas Tree Promotion, 
Research, and Information Order


Sec.  1214.520  Late payment and interest charges for past due 
assessments.

    (a) A late payment charge shall be imposed on any producer or 
importer who fails to make timely remittance to the Board of the total 
assessments for which such producer or importer is liable. The late 
payment charge will be imposed on any assessments not received within 
30 calendar days of the date they are due. This one-time late payment 
charge shall be $250 and will be increased to $500 after 90 days of 
delinquency.
    (b) In addition to the late payment charge, 1.5 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 30 calendar days after the 
date the assessments are due. Such interest will continue to accrue 
monthly until the outstanding balance is paid to the Board.

    Dated: June 10, 2016.
Elanor Starmer,
Administrator.
[FR Doc. 2016-14150 Filed 6-14-16; 8:45 am]
BILLING CODE P



                                           38894            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations

                                              As amended, the Cotton Research and                  costs of collecting the cotton fee                     ■   2. Revise § 1205.12 to read as follows:
                                           Promotion Order (7 CFR part 1205)                       exceeded the cotton fee being collected.
                                           (Order) was approved by producers and                                                                          § 1205.12    Cotton.
                                                                                                      In January 2014, AMS became aware
                                           importers voting in a referendum held                   of CBP’s automation processes in                         The term cotton means all Upland
                                           July 17–26, 1991, and the amended                       connection with documenting and                        cotton harvested in the United States
                                           Order was published in the Federal                      collecting assessments. CBP indicated                  and all imports of Upland cotton,
                                           Register on December 10, 1991, (56 FR                   that the documentation and collection                  including the Upland cotton content of
                                           64470). A proposed rule implementing                    process is automated and costs have                    products derived thereof.
                                           the amended Order was published in                      been significantly decreased. Taking                   ■ 3. In § 1205.510, paragraph (b)(3) is
                                           the Federal Register on December 17,                    into account technological                             revised to read as set forth below (the
                                           1991, (56 FR 65450). Implementing                       advancements in the fee collection                     Import Assessment Table remains
                                           rules were published on July 1 and 2,                   process, CBP no longer charges USDA                    unchanged):
                                           1992, (57 FR 29181 and 57 FR 29431,                     for the collection of assessments on
                                           respectively).                                                                                                 § 1205.510    Levy of assessments.
                                                                                                   agricultural commodities. This has
                                              The total value of assessment levied                 eliminated the administrative burden                   *     *     *     *     *
                                           on cotton imports is the sum of two                     associated with the collection of                        (b) * * *
                                           parts. The first part of the assessment is              assessments.                                             (3) The following table contains
                                           based on the weight of cotton                              AMS is striking subparagraph (i)                    Harmonized Tariff Schedule (HTS)
                                           imported—levied at a rate of $1 per bale                under paragraph § 1205.510(b)(3) of the                classification numbers and
                                           of cotton, which is equivalent to 500                   Cotton Research and Promotion Rules                    corresponding conversion factors and
                                           pounds, or $1 per 226.8 kilograms of                    and Regulations and appending to the                   assessments. The left column of the
                                           cotton. The second part of the import                   paragraph section the language                         following table indicates the HTS
                                           assessment (referred to as the                          currently in subparagraph (ii). This                   classifications of imported cotton and
                                           supplemental assessment) is based on                    action reflects the technological                      cotton-containing products subject to
                                           the value of imported cotton lint or the                efficiencies of the CBP import                         assessment. The center column
                                           cotton contained in imported cotton                     documentation process by eliminating                   indicates the conversion factor for
                                           products—levied at a rate of five-tenths                the de minimis provisions in the                       determining the raw fiber content for
                                           of one percent of the value of                          regulations, and, therefore, helps to                  each kilogram of the HTS. HTS numbers
                                           domestically produced cotton. The                       ensure that the assessments collected on               for raw cotton have no conversion factor
                                           current assessment on imported cotton                   imported cotton and the cotton content                 in the table. The right column indicates
                                           is $0.012013 per kilogram of imported                   of imported products will be the same                  the total assessment per kilogram of the
                                           cotton.                                                 as those paid on domestically produced                 article assessed. In the event that any
                                              The Act provides that ‘‘Any de                       cotton. In addition, AMS is modifying                  HTS number subject to assessment is
                                           minimis figure as established under this                the definition of cotton in § 1205.12 to               changed and such change is merely a
                                           paragraph shall be such as to minimize                  include imported cotton that previously                replacement of a previous number and
                                           the burden in administering the                         was exempted due to the de minimis                     has no impact on the physical
                                           assessment provision but still provide                  exemption. With this action, importers                 properties, description, or cotton
                                           for the maximum participation of                        who previously imported de minimis                     content of the product involved,
                                           imports of cotton in the assessment                     amounts of cotton may now be eligible                  assessments will continue to be
                                           provisions of this chapter.’’ 7 U.S.C.                  to participate in the sign-up period for               collected based on the new number.
                                           2116(c)(2). The Import Assessment                       a continuance referendum that would                    *     *     *     *     *
                                           Table in paragraph (b)(3) of § 1205.510                 determine whether a continuance                          Dated: June 10, 2016.
                                           of the Cotton Research and Promotion                    referendum is favored.                                 Elanor Starmer,
                                           Rules and Regulations indicates the                     Summary of Comments                                    Administrator.
                                           total assessment rate ($ per kilogram)
                                                                                                                                                          [FR Doc. 2016–14174 Filed 6–14–16; 8:45 am]
                                           due for each Harmonized Tariff                             A proposed rule was published in the
                                                                                                                                                          BILLING CODE 3410–02–P
                                           Schedule (HTS) number that is subject                   Federal Register on December 16, 2014,
                                           to assessment. Subparagraph (i) of this                 with a comment period of December 11,
                                           same paragraph provides for an                          2015, through January 11, 2016 (80 FR
                                                                                                                                                          DEPARTMENT OF AGRICULTURE
                                           exemption from assessment for any line                  76873). No comments were received by
                                           item entry of cotton appearing on U.S.                  AMS. The proposed rule may be viewed                   Agricultural Marketing Service
                                           Customs and Border Protection (CBP)                     at www.regulations.gov.
                                           entry documentation whose calculated                    List of Subjects in 7 CFR Part 1205                    7 CFR Part 1214
                                           assessment is two dollars ($2.00) or less.
                                           This de minimis exemption was                             Advertising, Agricultural research,                  [Document Number AMS–SC–15–0072]
                                           established to minimize the                             Cotton, Marketing agreements,
                                                                                                   Reporting and Recordkeeping                            Christmas Tree Promotion, Research,
                                           administrative burden of collecting
                                                                                                   requirements.                                          and Information Order; Late Payment
                                           import assessments, which was
                                                                                                                                                          and Interest Charges on Past Due
                                           originally estimated to be $2.00 per line                 For the reasons set forth in the                     Assessments
                                           item, where administrative costs would                  preamble, 7 CFR part 1205 is amended
                                           exceed the actual value of the                          as follows:                                            AGENCY:  Agricultural Marketing Service,
                                           assessment.                                                                                                    USDA.
ehiers on DSK5VPTVN1PROD with RULES




                                              The de minimis figure is an estimate                 PART 1205—COTTON RESEARCH                              ACTION: Final rule.
                                           of administrative burden, which is                      AND PROMOTION
                                           equivalent to the transactions costs of                                                                        SUMMARY:  This rule prescribes late
                                           collecting the cotton fee. The de                       ■ 1. The authority citation for part 1205              payment and interest charges on past
                                           minimis provision was necessary to                      continues to read as follows:                          due assessments under the Christmas
                                           avoid instances where the transactions                      Authority: 7 U.S.C. 2101–2118.                     Tree Promotion, Research, and


                                      VerDate Sep<11>2014   14:36 Jun 14, 2016   Jkt 238001   PO 00000   Frm 00014   Fmt 4700   Sfmt 4700   E:\FR\FM\15JNR1.SGM   15JNR1


                                                            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations                                           38895

                                           Information Order (Order). The Order is                 and Coordination with Indian Tribal                    (b) and (c) specify that the collection of
                                           administered by the Christmas Tree                      Governments. The review reveals that                   assessments on Christmas trees that are
                                           Promotion Board (Board) with oversight                  this regulation will not have substantial              cut and sold or imported will be the
                                           by the U.S. Department of Agriculture                   and direct effects on Tribal governments               responsibility of the producer who
                                           (USDA). Under the Order, assessments                    and will not have significant Tribal                   produces the Christmas trees or causes
                                           are collected from domestic producers                   implications.                                          them to be cut, or the importer who
                                           and importers and used for research and                                                                        imports Christmas trees for marketing in
                                                                                                   Executive Order 12988
                                           promotion projects designed to maintain                                                                        the United States.
                                           and expand the market for fresh cut                        This rule has been reviewed under                      Section 1214.52(e) specifies that ‘‘a
                                           Christmas trees. This rule implements                   Executive Order 12988, Civil Justice                   late payment charge, may be imposed
                                           authority contained in the Order that                   Reform. It is not intended to have                     on any producer or importer who fails
                                           allows the Board to collect late payment                retroactive effect. Section 524 of the                 to remit to the Board, the total amount
                                           and interest charges on past due                        1996 Act provides that it shall not affect             for which any such producer or
                                           assessments. Late payment and interest                  or preempt any other Federal or State                  importer is liable on or before the due
                                           charges will begin to accrue on unpaid                  law authorizing promotion or research                  date established by the Board. In
                                           assessments beginning 30 days after the                 relating to an agricultural commodity.                 addition to the late payment charge, an
                                           effective date of this rule. This action                   Under section 519 of the 1996 Act (7                interest charge may be imposed on the
                                           contributes to effective administration                 U.S.C. 7418), a person subject to an                   outstanding amount for which the
                                           of the program. This rule also provides                 order may file a written petition with                 producer or importer is liable. The rate
                                           authority for the crop year and fiscal                  USDA stating that an order, any                        for late payment and interest charges
                                           period to be changed through                            provision of an order, or any obligation               shall be specified by the Secretary
                                                                                                   imposed in connection with an order, is                through rulemaking.’’
                                           administrative action. These changes
                                                                                                   not established in accordance with the                    The Order was implemented in
                                           were unanimously recommended by the
                                                                                                   law, and request a modification of an                  November 2011, but immediately
                                           Board.
                                                                                                   order or an exemption from an order.                   stayed. The stay was lifted on April 7,
                                           DATES: Effective June 16, 2016.                         Any petition filed challenging an order,               2014, and the program is currently in
                                           FOR FURTHER INFORMATION CONTACT:                        any provision of an order, or any                      effect. Domestic assessments were due
                                           Victoria Carpenter, Marketing                           obligation imposed in connection with                  February 15, 2016. This will be the first
                                           Specialist, Promotion and Economics                     an order, shall be filed within two years              assessment collection by the Board.
                                           Division, Specialty Crops Program,                      after the effective date of an order,                  Importers will be responsible for paying
                                           AMS, USDA, Stop 0244, 1400                              provision, or obligation subject to                    the assessment directly to the Board 30
                                           Independence Avenue SW., Room                           challenge in the petition. The petitioner              calendar days after importation. U.S.
                                           1406–S, Washington, DC 20250–0244;                      will have the opportunity for a hearing                Customs and Border Protection
                                           telephone: (202) 720–9915; facsimile:                   on the petition. Thereafter, USDA will                 (Customs) will not be collecting on
                                           (202) 205–2800; or electronic mail:                     issue a ruling on the petition. The 1996               imports for the 2015 season. Producers
                                           VictoriaM.Carpenter@ams.usda.gov.                       Act provides that the district court of                or importers who domestically produce
                                           SUPPLEMENTARY INFORMATION: This rule                    the United States for any district in                  or import less than 500 trees annually
                                           is issued under the Order (7 CFR part                   which the petitioner resides or conducts               are exempt from assessment.
                                           1214). The Order is authorized under                    business shall have the jurisdiction to                   This rule implements authority
                                           the Commodity Promotion, Research,                      review a final ruling on the petition, if              contained in the Order and the 1996 Act
                                           and Information Act of 1996 (1996                       the petitioner files a complaint for that              that allows the Board to collect late
                                           Act)(7 U.S.C. 7411–7425).                               purpose not later than 20 days after the               payment and interest charges on past
                                                                                                   date of the entry of USDA’s final ruling.              due assessments.
                                           Executive Order 12866 and Executive                                                                               Late payment and interest charges
                                           Order 13563                                             Background                                             will begin to accrue on unpaid
                                              Executive Orders 12866 and 13563                        This rule prescribes late payment and               assessments beginning 30 days after the
                                           direct agencies to assess all costs and                 interest charges on past due                           effective date of the final rule. A late
                                           benefits of available regulatory                        assessments. The Order is administered                 payment charge of $250 will be applied
                                           alternatives and, if regulation is                      by the Board with oversight by USDA.                   to any unpaid assessments for producers
                                           necessary, to select regulatory                         Under the Order, assessments are                       and importers that are delinquent in
                                           approaches that maximize net benefits                   collected from domestic producers and                  paying their assessment. If the
                                           (including potential economic,                          importers and used for research and                    assessment is paid after February 15, but
                                           environmental, public health and safety                 promotion projects designed to maintain                up to 29 days after the effective date of
                                           effects, distributive impacts and equity).              and expand the market for fresh cut                    this final rule, no late payment charge
                                           Executive Order 13563 emphasizes the                    Christmas trees. This rule implements                  will be imposed. The late payment
                                           importance of quantifying both costs                    authority contained in the Order and the               charge will be increased to $500 after 90
                                           and benefits, reducing costs,                           1996 Act that allows the Board to collect              days after the effective date of this final
                                           harmonizing rules and promoting                         late payment and interest charges on                   rule. Additionally, a 1.5 percent interest
                                           flexibility. This action has been                       past due assessments. This action was                  charge per month will be imposed on
                                           designated as a ‘‘non-significant                       unanimously recommended by the                         unpaid assessments and fees owed,
                                           regulatory action’’ under section 3(f) of               Board and will contribute to effective                 beginning 30 days after the effective
                                           Executive Order 12866. Accordingly,                     administration of the program.                         date of this final rule. The delay of the
                                           the Office of Management and Budget                        Section 1214.52(a) of the Order                     imposition of late payment and interest
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                                           (OMB) has waived the review process.                    specifies that the funds to cover the                  charges only applies to the initial period
                                                                                                   Board’s expenses shall be paid from                    of assessment collection. Assessment
                                           Executive Order 13175                                   assessments on producers and                           funds are used by the Board for
                                             This action has been reviewed in                      importers, donations from persons not                  activities designed to benefit all
                                           accordance with the requirements of                     subject to assessments, and from other                 industry members. Thus, it is important
                                           Executive Order 13175, Consultation                     funds available to the Board. Paragraphs               that all assessed entities pay their


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                                           38896            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations

                                           assessments in a timely manner. Entities                   The purpose of the RFA is to fit                    1214.52(e) of the Order and section
                                           who fail to pay their assessments on                    regulatory actions to the scale of                     517(e) of the 1996 Act.
                                           time would be able to reap the benefits                 businesses subject to such actions so                     In addition, one other change is being
                                           of Board programs at the expense of                     that small businesses will not be                      made to the Order. It will revise the
                                           others. In addition, they would be able                 disproportionately burdened. The Small                 definition of crop year and fiscal period
                                           to utilize funds for their own use that                 Business Administration (SBA) defines,                 as defined in sections 1214.5 and
                                           should otherwise be paid to the Board                   in 13 CFR part 121, small agricultural                 1214.8, respectively. The Board
                                           to finance Board programs.                              producers as those having annual                       recommended this change because
                                                                                                   receipts of no more than $750,000 and                  USDA revised the crop year and fiscal
                                           Board Recommendation
                                                                                                   small agricultural service firms                       period during the promulgation process
                                              The Board met on July 17, 2015, and                  (producers and importers) as those                     from what was originally proposed by
                                           unanimously recommended specifying                      having annual receipts of no more than                 the industry. The Board wants the
                                           rates of late payment charges and                       $7.5 million.                                          flexibility to change these dates if
                                           interest on past due assessments in the                    According to the 2012 Census of                     necessary. The terms crop year and
                                           Order’s regulations. Specifically, the                  Agriculture published by the National                  fiscal period will be revised by adding
                                           Board recommended that a late payment                   Agricultural Statistics Service (NASS), it             language to allow the Board to change
                                           charge of $250 be applied to late                       is estimated that there are 15,494 farms               the crop year or fiscal period
                                           assessments for producers and                           that sold cut Christmas trees in the                   administratively through Board action.
                                           importers that are delinquent in paying                 United States. According to NASS, the                     Regarding the economic impact of this
                                           their assessment 30 days after the due                  value of cut Christmas trees sold in 2012              rule on affected entities, this action
                                           date. The late payment charge will                      was $808,644,000. Dividing that value                  imposes no costs on producers and
                                           increase to $500 after 90 days of                       by the number of farms yields an                       importers who pay their assessments on
                                           delinquency. Additionally, a 1.5 percent                average annual producer revenue of                     time. It merely provides an incentive for
                                           interest charge per month will be                       $52,191. Therefore it is estimated that                entities to remit their assessments in a
                                           imposed on late assessments and fees                    all farms that sold Christmas trees had                timely manner. For all entities who are
                                           owed, beginning 30 days after the                       revenue under $750,000.                                delinquent in paying assessments, both
                                           assessment due date. This fee structure                    Likewise, based on Customs data, it is
                                                                                                                                                          large and small, the charges will be
                                           is not overtly burdensome on small                      estimated there are 153 importers of
                                                                                                                                                          applied uniformly. As for the impact on
                                           producers or importers, but does create                 Christmas trees. Using 2014 Customs
                                                                                                                                                          the industry as a whole, this action will
                                           the incentive to promote timely                         data, all importers import less than $7.5
                                                                                                                                                          help facilitate program administration
                                           payment of assessments due. This                        million worth of Christmas trees
                                                                                                                                                          by providing an incentive for entities to
                                           action contributes to the efficient                     annually. Thus, all domestic producers
                                                                                                                                                          remit their assessments in a timely
                                           administration of the program.                          and importers of Christmas trees would
                                              This action will help facilitate                                                                            manner, with the intent of creating a fair
                                                                                                   be considered small entities.
                                           program administration by providing an                     Regarding the value of the                          and equitable process among all
                                           incentive for entities to remit                         commodity, as mentioned above, based                   assessed entities.
                                           assessments in a timely manner, with                    on 2012 NASS Census of Agriculture                        Additionally, as previously
                                           the intent of creating a fair and equitable             data, the value of the domestic cut                    mentioned, the Order provides for an
                                           process among all assessed entities.                    Christmas trees was about $808.6                       exemption for entities that produce or
                                           Accordingly, a new Subpart C is added                   million. According to Customs data, the                import less than 500 Christmas trees.
                                           to the Order for rules and regulations,                 value of 2014 imports was about $25.8                     Regarding alternatives, one option to
                                           and a new section 1214.520 is added to                  million.                                               the action is to maintain the status quo
                                           Subpart C.                                                 This rule prescribes late payment and               and not prescribe late payment and
                                              This rule also makes one additional                  interest charges on past due assessments               interest charges for past due
                                           change to the Order. This rule revises                  under the Order. The Order is                          assessments. However, the Board
                                           the definition of crop year and fiscal                  administered by the Board with                         determined that implementing such
                                           period as defined in sections 1214.5 and                oversight by USDA. Under the Order,                    charges would help facilitate program
                                           1214.8, respectively. The Board                         assessments are collected from                         administration by encouraging entities
                                           recommended this change because                         producers and importers of Christmas                   to pay their assessments in a timely
                                           USDA revised the crop year and fiscal                   trees that are cut and sold or imported.               manner. The Board reviewed rates of
                                           period during the promulgation process                     This rule will add a new section                    late payment and interest charges
                                           from what was originally proposed by                    1214.520 that will specify a late                      prescribed in other research and
                                           the industry. The Board wants the                       payment charge of $250 to be applied to                promotion programs and concluded that
                                           flexibility to change these dates if                    late assessments for producers and                     the late payment charge and the interest
                                           necessary. The terms crop year and                      importers that are delinquent in paying                charge contained in this rule are
                                           fiscal period will be revised by adding                 their assessment 30 days after the due                 appropriate.
                                           language to allow the Board to change                   date. The late payment charge will be                     In accordance with the Paperwork
                                           the crop year or fiscal period                          increased to $500 after 90 days of                     Reduction Act of 1995 (44 U.S.C.
                                           administratively through Board action.                  delinquency. Additionally, a 1.5 percent               Chapter 35), the information collection
                                                                                                   interest charge per month will be                      and recordkeeping requirements that are
                                           Final Regulatory Flexibility Act                        imposed on late assessments and fees                   imposed by the Order have been
                                           Analysis                                                owed, beginning 30 days after the                      approved under OMB control number
                                             In accordance with the Regulatory                     assessment due date. This section will                 0581–0093. This rule results in no
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                                           Flexibility Act (RFA) (5 U.S.C. 601–                    be included in a new Subpart C—                        changes to the information collection
                                           612), AMS is required to examine the                    Provisions Implementing the Christmas                  and recordkeeping requirements
                                           impact of this rule on small entities.                  Tree Promotion, Research, and                          previously approved and imposes no
                                           Accordingly, AMS has considered the                     Information Order. This action was                     additional reporting and recordkeeping
                                           economic impact of this action on such                  unanimously recommended by the                         burden on domestic producers and
                                           entities.                                               Board and is authorized under section                  importers of Christmas trees.


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                                                            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations                                          38897

                                              As with all Federal promotion                          For the reasons set forth in the                     DEPARTMENT OF TRANSPORTATION
                                           programs, reports and forms are                         preamble, 7 CFR part 1214 is amended
                                           periodically reviewed to reduce                         as follows:                                            Federal Aviation Administration
                                           information requirements and
                                           duplication by industry and public                      PART 1214—CHRISTMAS TREE                               14 CFR Part 39
                                           sector agencies. Finally, USDA has not                  PROMOTION, RESEARCH, AND                               [Docket No. FAA–2015–3635; Directorate
                                           identified any relevant Federal rules                   INFORMATION ORDER                                      Identifier 2015–NM–037–AD; Amendment
                                           that duplicate, overlap, or conflict with                                                                      39–18553; AD 2016–12–04]
                                           this rule.                                              ■ 1. The authority citation for 7 CFR
                                                                                                                                                          RIN 2120–AA64
                                              AMS is committed to complying with                   part 1214 continues to read as follows:
                                           the E-Government Act, to promote the                      Authority: 7 U.S.C. 7411–7425; 7 U.S.C.              Airworthiness Directives; Airbus
                                           use of the Internet and other                           7401.                                                  Airplanes
                                           information technologies to provide
                                           increased opportunities for citizen                     ■ 2. Section 1214.5 is revised to read as              AGENCY:  Federal Aviation
                                           access to Government information and                    follows:                                               Administration (FAA), Department of
                                           services, and for other purposes.                                                                              Transportation (DOT).
                                              Regarding outreach efforts, the Board                § 1214.5    Crop year.                                 ACTION: Final rule.
                                           met on July 17, 2015, and unanimously                     Crop year means the period August 1                  SUMMARY:   We are adopting a new
                                           recommended these changes to the                        through July 31 or such other period                   airworthiness directive (AD) for all
                                           Order. All of the Board’s meetings,                     approved by the Secretary.                             Airbus Model A318 series airplanes;
                                           including meetings held via                                                                                    A319 series airplanes; A320–211, –212,
                                           teleconference, are open to the public                  ■ 3. Section 1214.8 is revised to read as
                                                                                                   follows:                                               –214, –231, –232, and –233 airplanes;
                                           and interested persons are invited to                                                                          and A321 series airplanes. This AD was
                                           participate and express their views.                                                                           prompted by an evaluation by the
                                                                                                   § 1214.8    Fiscal period.
                                              A proposed rule concerning this                                                                             design approval holder (DAH)
                                           action was published in the Federal                       Fiscal period means the period                       indicating that certain structural repair
                                           Register on March 1, 2016 (81 FR                        August 1 through July 31 or such other                 manual (SRM) inspection requirements
                                           10530). The proposal was made                           period approved by the Secretary.                      for the fuselage skin repairs are
                                           available through the Internet by USDA                                                                         insufficient to detect cracks. This AD
                                                                                                   ■  4. Subpart C, consisting of § 1214.520,
                                           and the Office of the Federal Register. A                                                                      requires an inspection to determine
                                                                                                   is added to read as follows:
                                           15-day comment period ending March                                                                             whether any fuselage external skin
                                           16, 2016, was provided to allow                         Subpart C—Provisions Implementing                      (doubler) repairs have been
                                           interested persons to submit comments.                  the Christmas Tree Promotion,                          accomplished, an inspection for
                                           No comments were received.                              Research, and Information Order                        cracking of certain repaired external
                                              After consideration of all relevant                                                                         fuselage skin areas in the fuselage, and
                                           matters presented, including the                        § 1214.520 Late payment and interest                   repair if necessary. We are issuing this
                                           information and recommendation                          charges for past due assessments.                      AD to detect and correct fatigue
                                           submitted by the Board and other                                                                               cracking of the fuselage skin, which
                                                                                                      (a) A late payment charge shall be
                                           available information, it is hereby found                                                                      could result in reduced structural
                                                                                                   imposed on any producer or importer
                                           that this rule, as hereinafter set forth, is                                                                   integrity of the airplane.
                                                                                                   who fails to make timely remittance to
                                           consistent with and will effectuate the                                                                        DATES: This AD becomes effective July
                                                                                                   the Board of the total assessments for
                                           purposes of the 1996 Act.                                                                                      20, 2016.
                                                                                                   which such producer or importer is
                                              It is further found that good cause                                                                           The Director of the Federal Register
                                                                                                   liable. The late payment charge will be
                                           exists for not postponing the effective                                                                        approved the incorporation by reference
                                                                                                   imposed on any assessments not
                                           date of this rule until 30 days after                                                                          of a certain publication listed in this AD
                                                                                                   received within 30 calendar days of the
                                           publication in the Federal Register (5                                                                         as of July 20, 2016.
                                                                                                   date they are due. This one-time late
                                           U.S.C. 553) because this is the initial                                                                        ADDRESSES: For service information
                                                                                                   payment charge shall be $250 and will
                                           year for the collection of assessments                                                                         identified in this final rule, contact
                                                                                                   be increased to $500 after 90 days of
                                           under the Order, on the 2015 harvest,                                                                          Airbus, Airworthiness Office—EIAS, 1
                                                                                                   delinquency.
                                           and assessments were due on February                                                                           Rond Point Maurice Bellonte, 31707
                                           15, 2016. Importers are responsible for                    (b) In addition to the late payment                 Blagnac Cedex, France; telephone +33 5
                                           paying assessments directly to the Board                charge, 1.5 percent per month interest                 61 93 36 96; fax +33 5 61 93 44 51; email
                                           30 calendar days after importation. The                 on the outstanding balance, including                  account.airworth-eas@airbus.com;
                                           Board would like to implement this                      any late payment charge and accrued                    Internet http://www.airbus.com. You
                                           incentive as soon as possible to facilitate             interest, will be added to any accounts                may view this referenced service
                                           the initial collection of assessments.                  for which payment has not been                         information at the FAA, Transport
                                           Additionally, this action was                           received by the Board within 30                        Airplane Directorate, 1601 Lind Avenue
                                           unanimously recommended by the                          calendar days after the date the                       SW., Renton, WA. For information on
                                           Board. Further, a 15-day comment                        assessments are due. Such interest will                the availability of this material at the
                                           period was provided for in the proposed                 continue to accrue monthly until the                   FAA, call 425–227–1221. It is also
                                           rule and no comments were received.                     outstanding balance is paid to the                     available on the Internet at http://
                                                                                                   Board.                                                 www.regulations.gov by searching for
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                                           List of Subjects in 7 CFR Part 1214
                                                                                                     Dated: June 10, 2016.                                and locating Docket No. FAA–2015–
                                             Administrative practice and                                                                                  3635.
                                                                                                   Elanor Starmer,
                                           procedure, Advertising, Consumer
                                           information, Christmas trees, Marketing                 Administrator.                                         Examining the AD Docket
                                           agreements, Reporting and                               [FR Doc. 2016–14150 Filed 6–14–16; 8:45 am]              You may examine the AD docket on
                                           recordkeeping requirements.                             BILLING CODE P                                         the Internet at http://


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Document Created: 2016-06-15 02:21:01
Document Modified: 2016-06-15 02:21:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective June 16, 2016.
ContactVictoria Carpenter, Marketing Specialist, Promotion and Economics Division, Specialty Crops Program, AMS, USDA, Stop 0244, 1400 Independence Avenue SW., Room 1406-S, Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800; or electronic mail: [email protected]
FR Citation81 FR 38894 
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Christmas Trees; Marketing Agreements and Reporting and Recordkeeping Requirements

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