81 FR 81657 - Pima Agriculture Cotton Trust Fund and Agriculture Wool Apparel Manufacturers Trust Fund
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation Federal Register Volume 81, Issue 223 (November 18, 2016)
Commodity Credit Corporation
Federal Register Volume 81, Issue 223 (November 18, 2016)
| Page Range | 81657-81660 | |
| FR Document | 2016-27661 |
[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)] [Rules and Regulations] [Pages 81657-81660] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27661] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 7 CFR Part 1471 RIN 0551-AA90 Pima Agriculture Cotton Trust Fund and Agriculture Wool Apparel Manufacturers Trust Fund AGENCY: Foreign Agricultural Service and Commodity Credit Corporation (CCC), USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule makes amendments to the final rule, with request for comments, published in the Federal Register on March 9, 2015, that established regulations for the Pima Agriculture Cotton Trust Fund (Agriculture Pima Trust) and the Agriculture Wool Apparel Manufacturers Trust Fund (Agriculture Wool Trust) programs. This final rule is amended based on comments received and to add details for the Refund of Duties Paid on Imports of Certain Wool Products (Wool Duty Refund) payment. The administration of the Wool Duty Refund payment was transferred to the United States Department of Agriculture (USDA) beginning in calendar year (CY) 2016 and assigned to the Foreign Agricultural Service (FAS). It was previously administered by the Customs and Border Protection Agency of the Department of Homeland Security. DATES: This final rule is effective November 18, 2016. FOR FURTHER INFORMATION CONTACT: Peter W. Burr, Import Policies and Export Reporting Division, Office of Trade Programs, Foreign Agricultural Service, USDA; email: [email protected], 202-720-3274. SUPPLEMENTARY INFORMATION: Background On March 9, 2015, FAS published a final rule, with request for comments, in the Federal Register (80 FR 12321) for the Agriculture Pima Trust and the Agriculture Wool Trust programs. The final rule, with request for comments, was published under RIN 0551-AA86. The final rule, with request for comments, established regulations and sought comments for the Agriculture Pima Trust program and for three of the four payments under the Agriculture Wool Trust program. The Agriculture Pima Trust and Agriculture Wool Trust programs were established in the Agricultural Act of 2014 (Farm Bill). The Farm Bill transferred to USDA the responsibility for administering the Agriculture Pima Trust and three of the four payments under the Agriculture Wool Trust beginning in 2015, but transferred the fourth payment, the Wool Duty Refund, beginning in 2016. Discussion of Comments The following is a summary and discussion of the comments received relative to the Agriculture Pima Trust and the Agriculture Wool Trust programs along with the reasoning for the revisions made. General A commenter suggested that applicants not be required as noted in Sec. 1471.1(b)(3)(iii), Sec. 1471.1(b)(4), Sec. 1471.10(b)(3)(iii), and Sec. 1471.10(b)(4), to annually file IRS forms W-9 (U.S. person or resident alien) or the 1199A (direct deposit) with an application for either the Agriculture Pima Trust or Agriculture Wool Trust programs unless a change in the applicant's W-9 or 1199A information had occurred when compared to their previous year's application. This was deemed to be reasonable. Beginning in 2017, IRS forms W-9 and 1199A will only need to be filed if changes in the information have occurred. A commenter noted that a technical correction is necessary in paragraphs (1) and (2) of Sec. 1471.2(c) by closing the parentheticals after the word ``insurance.'' This correction will be made. Payments to Manufacturers of Certain Worsted Wool Fabrics A commenter identified an error common to paragraphs (b)(1)(ii) and (b)(2)(ii) of Sec. 1471.11, Payments to manufacturers of certain worsted wool fabrics. The payment formula for payments to eligible persons is provided for under this section. The payment formula mistakenly states in paragraph (ii) that payments will be calculated based on the eligible person's production in the preceding year. However, the payments are actually based on the eligible person's production of qualifying worsted wool fabric during calendar years 1999, 2000, and 2001. This correction will be made. Free Trade Zones A commenter suggested that the scope of the monetization of the wool tariff rate quota payment as noted under Sec. 1471.13(a)(2)(i) be expanded to include eligible entities, that are manufacturers and would otherwise be eligible for monetization payments, that import qualifying worsted wool into a free trade zone (FTZ), cut the wool and use it to make worsted wool suits for men and boys within the FTZ. The monetization payment requires that the eligible entities receiving a monetization payment (1) import into the Customs territory of the United States the qualifying worsted wool directly or indirectly; (2) manufacture in the United States the qualifying worsted wool into worsted wool suits for men and boys; and (3) own the worsted wool at the time it's cut and manufactured. An entity that manufactures the suits in an FTZ and does not export from the FTZ into the Customs territory of the United States the qualifying worsted wool directly or indirectly, does not qualify for this benefit because by definition the entity avoided paying the import duty on the qualifying worsted wool. However, an eligible entity that manufacturers the suits in an FTZ and exports into the Customs territory of the United States the qualifying worsted wool directly or indirectly and thus pays the import duty on the qualifying worsted wool, does qualify for this benefit. For the purpose of the monetization payment, the worsted wool suits for men and boys are manufactured in the U.S. and all environmental, worker safety, and wage protection laws, etc., would apply to this manufacturer. USDA will also broaden the scope of eligible entities as it pertains to the wool yarn, wool fiber, and wool top compensation payment found at Sec. 1471.14(a)(2)(i) to include those operating within a FTZ. Definition of Eligible Person A commenter suggested that the definition of an eligible person found at Sec. 1471.13(a)(2)(i) in the monetization of the wool tariff rate quota payment be modified to allow an eligible person to claim the annual dollar value and quantity of imported qualifying worsted wool fabric cut and sewn if the eligible person owned the wool at the time it was cut and sewn, whether the person actually cut and sewed the imported qualifying worsted wool or another person cut and sewed the wool on behalf of the eligible person. This was deemed reasonable and is already [[Page 81658]] allowed under Sec. 1471.13(d)(3)(i)(A) and (d)(3)(ii)(A). USDA will also make this change as it pertains to the wool yarn, wool fiber, and wool top duty compensation payment found at Sec. 1471.14(a)(2)(i). Reporting of Direct Imports A commenter suggested that applicants for the monetization of the wool tariff rate quota payment not be required to include direct imports on their annual application for this payment. The commenter's suggestion was based on their observance that countries of origin of imported qualifying worsted wool by direct importers is included on the Customs and Border Protection (CBP) form #7501, which is provided to the Secretary of Treasury every year, and thus it was redundant to also require this information to be included on the affirmation part of the annual application. Even though this information is provided to CBP each year, USDA will maintain the requirement as found at Sec. 1471.13(d)(2)(iii)(A) and (B) that applicants for the monetization of the wool tariff rate quota payment include their direct and indirect imports on their annual application. Including direct and indirect imports on the application for this payment will make it easier for USDA to process the annual payments and to distribute them in a timely manner. Importers Versus Manufacturers Regarding the monetization of the wool tariff rate quota payment, found at Sec. 1471.13(a)(2), a commenter suggested that the definitions of eligible person and qualifying worsted wool, a provision eliciting specific business information, and the scope of the affirmation, be expanded to include all importers of qualifying worsted wool suitable for worsted wool suits, as opposed to importers of qualifying worsted wool that actually used the wool to make suits for men or boys. To support the commenter's position, the commenter cited statutory references to types of worsted wool fabrics categorized under the harmonized tariff schedule (HTS). However the commenter conflates statutory provisions authorizing the tariffs for HTS categories of worsted wool suitable for wool suits with defining the universe of eligible manufacturers who import qualifying worsted wool and are eligible for payments under this program. The wool tariff rate quota administered by the Secretary of Commerce, until its statutory sunset in 2014, in fact required that to benefit from the tariff reduction, the worsted wool had to be actually used for worsted wool suits. This monetization program provides payments to manufacturers who formerly benefitted from the tariff reduction. The requirement in the monetization payment that the qualifying worsted wool must be used by the manufacturer receiving the payment to make suits for men and boys will remain unchanged. A commenter made a suggestion regarding the wool yarn, wool fiber, and wool top duty compensation payment found at Sec. 1471.14(a)(2) that is similar to the comment above. The commenter suggested that the definitions of eligible person and qualifying wool, a provision eliciting specific business information, and the scope of the affirmation, be expanded from manufacturers that directly or indirectly imported qualifying wool and manufactured the qualifying wool, to include all importers of qualifying wool (whether or not the importer was also the manufacturer of the wool). To support this position, the commenter referred to statutory authority that did not require importers of qualifying wool to also be manufacturers of the qualifying wool. The commenter further stated that the wool duty refund program, of which only manufacturers of qualifying wool have participated, did not impose the requirement that the entity actually manufacture the qualifying wool. However the commenter is incorrect about what the statutory authority actually provides, and conflates extension of the duty suspension (that was applicable to all importers, regardless of whether they also manufactured men's and boy's wool suits) in section 5102 of the Trade Act of 2002, Public Law 107-210 and the wool duty refund payment program (that applied only to manufacturers of men's and boy's wool suits) in section 5101 of the Trade Act of 2002. The duty refund program administered by the U.S. Customs Service and by Customs and Border Protection in the Department of Homeland Security from 2002- 2014 required that the importer must also be the manufacturer of the qualifying wool. The requirements in the wool yarn, wool fiber, and wool top duty compensation payment that the qualifying wool must be imported and must also be used for further manufacturing by the importing manufacturer will remain unchanged. Refund of Duties Paid on Imports of Certain Wool Products The Wool Duty Refund payment found at Sec. 1471.12 was administered by the Department of Homeland Security's Customs and Border Protection (CBP) through 2015. In the Farm Bill, the Wool Duty Refund payment was established for the year 2016 through 2019 and was transferred to USDA. The Wool Duty Refund payment is open to U.S. entities that manufactured certain wool articles made with certain imported wool products during calendar years 2000, 2001 and 2002; received a 2005 payment under section 505 of the Trade and Development Act of 2000; and as of January 1st of the payment year, continues to be a manufacturer in the U.S. as provided for in Section 505(a) of the Trade and Development Act of 2000. FAS will administer the Wool Duty Refund payment for 2016-2019 exactly the same as it was administered by CBP. Executive Order 12630 This Executive Order requires careful evaluation of governmental actions that interfere with constitutionally protected property rights. This rule does not interfere with any property rights and, therefore, does not need to be evaluated on the basis of the criteria outlined in Executive Order 12630. Executive Order 12866 This final rule is issued in conformance with Executive Order 12866 and Administrative Procedure Act (5 U.S.C. 553). It has been determined to be not significant for the purposes of Executive Order 12866 and was not reviewed by OMB for this purpose. A cost-benefit assessment of this rule was not completed. Executive Order 12372 This final rule is not subject to Executive Order 12372, which requires intergovernmental consultation with State and local officials. See the notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115 (June 24, 1983). Executive Order 12988 This final rule has been reviewed in accordance with Executive Order 12988. This rule would not preempt State or local laws, regulations, or policies unless they present an irreconcilable conflict with this rule. This rule would not be retroactive. Executive Order 13132 This final rule has been reviewed under Executive order 13132, ``Federalism.'' The policies contained in this final rule do not have any substantial direct effect on States, on the relationship between the Federal government and the States, or on the distribution of power and responsibilities among the various [[Page 81659]] levels of government, nor does this final rule impose substantial direct compliance costs on State and local governments. Therefore, consultation with the States is not required. Executive Order 13175 This final rule has been reviewed for compliance with E.O. 13175. The policies contained in this final rule do not have tribal implications that preempt tribal law. Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this final rule because FAS is not required by 5 U.S.C. 553 or any other law to publish a notice of proposed rulemaking with respect to the subject matter of this final rule. Civil Rights Impact Statement No major civil rights impact is likely to result from the announcement of this final rule. It will not have a negative civil rights impact on very-low income, low income, moderate income, and minority populations. Environmental Assessment The environmental impacts of this rule have been considered in a manner consistent with the provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), and FAS regulations for compliance with NEPA (7 CFR part 799). FAS has determined that NEPA does not apply to this final rule and that no environmental assessment or environmental impact statement will be prepared. Unfunded Mandates Reform Act This final rule does not impose any enforceable duty or contain any unfunded mandate as described under Title II of the Unfunded Mandates Reform Act of 1995 (UMRA). Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA. E-Government Act Compliance FAS is committed to complying with the E-Government Act to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information, services, and for other purposes. The forms, regulations, and other information collection activities required to be utilized by a person subject to this final rule are available at: http://www.fas.usda.gov. List of Subjects in 7 CFR Part 1471 Agricultural commodities, imports. Accordingly, 7 CFR part 1471 is amended as follows: PART 1471--PIMA AGRICULTURE COTTON TRUST FUND (AGRICULTURE PIMA TRUST) AND AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND (AGRICULTURE WOOL TRUST) 0 1. The authority citation for part 1471 continues to read as follows: Authority: Sections 501-506, Pub. L. 106-200, (114 Stat. 299- 304); Section 4002, Pub. L. 108-429 (7 U.S.C. 7101 note); Section 1633, Pub. L. 109-280 (120 Stat. 1166); Section 325, Pub. L. 110-343 (122 Stat. 3875); Sections 12314 and 12315, Pub. L. 113-79 (7 U.S.C. 2101 note and 7101 note). Subpart A--Agriculture Pima Trust 0 2. Amend Sec. 1471.1 to revise paragraphs (b)(3)(iii) and (b)(4) to read as follows: Sec. 1471.1 Provisions common to this subpart. * * * * * (b) * * * (3) * * * (iii) A W-9 providing the Federal tax identification number of the person (if the information required by Form W-9 has changed since the previous application). (4) Standard Form 1199A. Every person claiming a payment must provide Standard Form 1199A, a direct deposit sign-up form, to facilitate any transfer of funds (if the information required by Form 1199A has changed since the previous application). * * * * * Sec. 1471.2 [Amended] 0 3. Amend Sec. 1471.2(c)(1) and (2) by removing ``(excluding duty, shipping, and insurance'' and adding in its place ``(excluding duty, shipping, and insurance)''. * * * * * 0 4. Revise Sec. 1471.5 to read as follows: Sec. 1471.5 Affidavit of pima cotton trade associations. In addition to applicable information requirements in Sec. 1471.1, trade associations filing a claim for a payment must electronically provide a statement which states that during the calendar year immediately preceding the payment they were, as determined by the Secretary, a domestic nationally recognized association established and operating for the promotion of pima cotton for domestic use in textile and apparel goods. Subpart B--Agriculture Wool Trust 0 5. Amend Sec. 1471.10 to revise paragraphs (b)(3)(iii) and (b)(4) to read as follows: Sec. 1471.10 Provisions common to this subpart. * * * * * (b) * * * (3) * * * (iii) A W-9 providing the Federal tax identification number of the person (if the information required by Form W-9 has changed since the previous application). (4) Every person claiming a payment must provide Standard Form 1199A, a direct deposit sign-up form, to facilitate any transfer of funds (if the information required by Form 1199A has changed since the previous application). * * * * * 0 6. Amend Sec. 1471.11 to revise paragraphs (b)(1)(ii) and (b)(2)(ii) to read as follows: Sec. 1471.11 Payments to manufacturers of certain worsted wool fabrics. * * * * * (b) * * * (1) * * * (ii) Payment amounts. A total of $2,666,000 will be allocated annually among eligible persons covered by this paragraph on the basis of the percentage of each eligible person's total production (actual production, not estimates) of qualifying worsted wool fabric described in paragraph (b)(1)(i) of this section for each of the calendar years 1999, 2000, and 2001 in relation to the total production of such fabric by all eligible persons who qualify for payments under this paragraph for each of the calendar years 1999, 2000, and 2001. * * * * * (2) * * * (ii) Payment amounts. A total of $2,666,000 will be allocated annually among eligible persons covered by this paragraph on the basis of the percentage of each eligible person's total production (actual production, not estimates) of qualifying worsted wool fabric described in paragraph (b)(2)(i) of this section for each of the calendar years 1999, 2000, and 2001 in relation to the total production of such fabric by all eligible persons who qualify for payments under this paragraph for each of the calendar years 1999, 2000, and 2001. * * * * * 0 7. Add Sec. 1471.12 to read as follows: [[Page 81660]] Sec. 1471.12 Refund of duties paid on imports of certain wool products. (a) Eligible wool. Eligible wool under the Duty Refund program means imported wool yarn of the kind described in section 505 of the Trade and Development Act of 2000 Public Law 106-200 (May 18, 2000). (b) Payments--(1) Eligibility. Persons eligible for a Duty Refund payment are manufacturers who, in the year immediately preceding the payment, were actively engaged in manufacturing wool (as determined by FAS), and in calendar years 2000, 2001, and 2002-- (i) Imported eligible wool directly or indirectly; and (ii) Used the imported wool to make men's or boy's suits; or (iii) Further manufactured the eligible imported wool. (2) Payment amount. Persons eligible for a Duty Refund payment shall be paid the same amounts that were made to the persons by CBP through FY 2015. 0 8. Amend Sec. 1471.13 to revise paragraphs (a)(2)(i), (d)(3)(i)(A), and (d)(3)(ii)(A) to read as follows: Sec. 1471.13 Monetization of the wool tariff rate quota. (a) * * * (2) * * * (i) In general. The term ``eligible person'' means a manufacturer (or a successor-in-interest to the manufacturer) in the U.S. or in a Foreign-Trade Zone authorized under the Foreign-Trade Zones Act of 1934 (19 U.S.C. 81a-81u) during the calendar year immediately preceding the payment that: (A) Imported qualifying worsted wool fabric; and (B) Used the imported qualifying worsted wool fabric directly or had another person use the qualifying worsted wool fabric providing the eligible person owned the qualifying worsted wool fabric at the time it was used: (1) In the case of wool of the kind described in subheadings 9902.51.11 or 9902.51.15 of the 2014 HTS, to produce worsted wool suits, suit-type jackets and trousers for men and boys; or (2) In the case of wool fabric of the kind described in subheading 9902.51.16 of the 2014 HTS, used such wool fabric in manufacturing. * * * * * (d) * * * (3) * * * (i) * * * (A) In general. When reporting the annual dollar value and quantity of imported qualifying worsted wool fabric, an eligible person may either have cut and sewn the wool on its own behalf or had another person cut and sew the wool on behalf of the eligible person, provided the eligible person owned the wool at the time it was cut and sewn. * * * * * (ii) * * * (A) In general. When reporting the annual dollar value and quantity of imported qualifying worsted wool fabric, an eligible person may either have manufactured the wool on its own behalf or had another person manufacture the wool on behalf of the eligible person, provided the eligible person owned the wool at the time of manufacture. * * * * * 0 9. Amend Sec. 1471.14 to revise paragraph (a)(2)(i) to read as follows: Sec. 1471.14 Wool yarn, wool fiber, and wool top duty compensation payment. (a) * * * (2) * * * (i) In general. The term ``eligible person'' means a manufacturer (or a successor-in-interest to the manufacturer) in the U.S. or in a Foreign-Trade Zone authorized under the Foreign-Trade Zones Act of 1934 (19 U.S.C. 81a-81u) during the calendar year immediately preceding the payment that (A) Imported qualifying wool; and (B) Manufactured the qualifying wool directly or had another person manufacture the qualifying wool providing the eligible person owned the qualifying wool at the time it was manufactured. * * * * * Dated: November 2, 2016. Philip C. Karsting, Administrator, Foreign Agricultural Service, and Vice President, Commodity Credit Corporation. [FR Doc. 2016-27661 Filed 11-17-16; 8:45 am] BILLING CODE 3410-10-P
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properly dispose of gifts that cannot be sought comments for the Agriculture Free Trade Zones
accepted under this subpart, such as by Pima Trust program and for three of the
sending an electronic mail message to A commenter suggested that the scope
four payments under the Agriculture
the appropriate agency ethics official or of the monetization of the wool tariff
Wool Trust program. The Agriculture
the employee’s supervisor. rate quota payment as noted under
Pima Trust and Agriculture Wool Trust
§ 1471.13(a)(2)(i) be expanded to
[FR Doc. 2016–27036 Filed 11–17–16; 8:45 am] programs were established in the
include eligible entities, that are
BILLING CODE 6345–03–P Agricultural Act of 2014 (Farm Bill). manufacturers and would otherwise be
The Farm Bill transferred to USDA the eligible for monetization payments, that
responsibility for administering the import qualifying worsted wool into a
DEPARTMENT OF AGRICULTURE Agriculture Pima Trust and three of the free trade zone (FTZ), cut the wool and
four payments under the Agriculture use it to make worsted wool suits for
Commodity Credit Corporation Wool Trust beginning in 2015, but men and boys within the FTZ.
transferred the fourth payment, the
7 CFR Part 1471 The monetization payment requires
Wool Duty Refund, beginning in 2016.
that the eligible entities receiving a
RIN 0551–AA90 Discussion of Comments monetization payment (1) import into
the Customs territory of the United
Pima Agriculture Cotton Trust Fund The following is a summary and States the qualifying worsted wool
and Agriculture Wool Apparel discussion of the comments received directly or indirectly; (2) manufacture in
Manufacturers Trust Fund relative to the Agriculture Pima Trust the United States the qualifying worsted
AGENCY: Foreign Agricultural Service and the Agriculture Wool Trust wool into worsted wool suits for men
and Commodity Credit Corporation programs along with the reasoning for and boys; and (3) own the worsted wool
(CCC), USDA. the revisions made. at the time it’s cut and manufactured.
ACTION: Final rule. General An entity that manufactures the suits
in an FTZ and does not export from the
SUMMARY: This final rule makes A commenter suggested that FTZ into the Customs territory of the
amendments to the final rule, with applicants not be required as noted in United States the qualifying worsted
request for comments, published in the § 1471.1(b)(3)(iii), § 1471.1(b)(4), wool directly or indirectly, does not
Federal Register on March 9, 2015, that § 1471.10(b)(3)(iii), and § 1471.10(b)(4), qualify for this benefit because by
established regulations for the Pima to annually file IRS forms W–9 (U.S. definition the entity avoided paying the
Agriculture Cotton Trust Fund person or resident alien) or the 1199A import duty on the qualifying worsted
(Agriculture Pima Trust) and the (direct deposit) with an application for wool. However, an eligible entity that
Agriculture Wool Apparel either the Agriculture Pima Trust or manufacturers the suits in an FTZ and
Manufacturers Trust Fund (Agriculture Agriculture Wool Trust programs unless exports into the Customs territory of the
Wool Trust) programs. This final rule is a change in the applicant’s W–9 or United States the qualifying worsted
amended based on comments received 1199A information had occurred when wool directly or indirectly and thus
and to add details for the Refund of compared to their previous year’s pays the import duty on the qualifying
Duties Paid on Imports of Certain Wool application. This was deemed to be worsted wool, does qualify for this
Products (Wool Duty Refund) payment. reasonable. Beginning in 2017, IRS benefit. For the purpose of the
The administration of the Wool Duty forms W–9 and 1199A will only need to monetization payment, the worsted
Refund payment was transferred to the be filed if changes in the information wool suits for men and boys are
United States Department of Agriculture have occurred. manufactured in the U.S. and all
(USDA) beginning in calendar year (CY) environmental, worker safety, and wage
2016 and assigned to the Foreign A commenter noted that a technical protection laws, etc., would apply to
Agricultural Service (FAS). It was correction is necessary in paragraphs (1) this manufacturer.
previously administered by the Customs and (2) of § 1471.2(c) by closing the
USDA will also broaden the scope of
and Border Protection Agency of the parentheticals after the word
eligible entities as it pertains to the wool
Department of Homeland Security. ‘‘insurance.’’ This correction will be yarn, wool fiber, and wool top
DATES: This final rule is effective made. compensation payment found at
November 18, 2016. Payments to Manufacturers of Certain § 1471.14(a)(2)(i) to include those
FOR FURTHER INFORMATION CONTACT: Worsted Wool Fabrics operating within a FTZ.
Peter W. Burr, Import Policies and Definition of Eligible Person
Export Reporting Division, Office of A commenter identified an error
Trade Programs, Foreign Agricultural common to paragraphs (b)(1)(ii) and A commenter suggested that the
Service, USDA; email: pimawool@ (b)(2)(ii) of § 1471.11, Payments to definition of an eligible person found at
fas.usda.gov, 202–720–3274. manufacturers of certain worsted wool § 1471.13(a)(2)(i) in the monetization of
SUPPLEMENTARY INFORMATION: fabrics. The payment formula for the wool tariff rate quota payment be
payments to eligible persons is provided modified to allow an eligible person to
Background for under this section. The payment claim the annual dollar value and
On March 9, 2015, FAS published a formula mistakenly states in paragraph quantity of imported qualifying worsted
final rule, with request for comments, in (ii) that payments will be calculated wool fabric cut and sewn if the eligible
mstockstill on DSK3G9T082PROD with RULES
the Federal Register (80 FR 12321) for based on the eligible person’s person owned the wool at the time it
the Agriculture Pima Trust and the production in the preceding year. was cut and sewn, whether the person
Agriculture Wool Trust programs. The However, the payments are actually actually cut and sewed the imported
final rule, with request for comments, based on the eligible person’s qualifying worsted wool or another
was published under RIN 0551–AA86. production of qualifying worsted wool person cut and sewed the wool on
The final rule, with request for fabric during calendar years 1999, 2000, behalf of the eligible person. This was
comments, established regulations and and 2001. This correction will be made. deemed reasonable and is already
VerDate Sep<11>2014 17:25 Nov 17, 2016 Jkt 241001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\18NOR1.SGM 18NOR1](https://thefederalregister.org/doc/81_FR_81880/page/1.svg)
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levels of government, nor does this final List of Subjects in 7 CFR Part 1471 Subpart B—Agriculture Wool Trust
rule impose substantial direct Agricultural commodities, imports.
compliance costs on State and local Accordingly, 7 CFR part 1471 is ■ 5. Amend § 1471.10 to revise
governments. Therefore, consultation amended as follows: paragraphs (b)(3)(iii) and (b)(4) to read
with the States is not required. as follows:
Executive Order 13175 PART 1471—PIMA AGRICULTURE
§ 1471.10 Provisions common to this
COTTON TRUST FUND subpart.
This final rule has been reviewed for (AGRICULTURE PIMA TRUST) AND
compliance with E.O. 13175. The AGRICULTURE WOOL APPAREL * * * * *
policies contained in this final rule do MANUFACTURERS TRUST FUND (b) * * *
not have tribal implications that (AGRICULTURE WOOL TRUST) (3) * * *
preempt tribal law. (iii) A W–9 providing the Federal tax
■ 1. The authority citation for part 1471 identification number of the person (if
Regulatory Flexibility Act continues to read as follows: the information required by Form W–9
The Regulatory Flexibility Act does Authority: Sections 501–506, Pub. L. 106– has changed since the previous
not apply to this final rule because FAS 200, (114 Stat. 299–304); Section 4002, Pub. application).
is not required by 5 U.S.C. 553 or any L. 108–429 (7 U.S.C. 7101 note); Section
1633, Pub. L. 109–280 (120 Stat. 1166); (4) Every person claiming a payment
other law to publish a notice of must provide Standard Form 1199A, a
Section 325, Pub. L. 110–343 (122 Stat.
proposed rulemaking with respect to the direct deposit sign-up form, to facilitate
3875); Sections 12314 and 12315, Pub. L.
subject matter of this final rule. 113–79 (7 U.S.C. 2101 note and 7101 note). any transfer of funds (if the information
Civil Rights Impact Statement required by Form 1199A has changed
Subpart A—Agriculture Pima Trust since the previous application).
No major civil rights impact is likely
■ 2. Amend § 1471.1 to revise * * * * *
to result from the announcement of this
final rule. It will not have a negative paragraphs (b)(3)(iii) and (b)(4) to read ■ 6. Amend § 1471.11 to revise
civil rights impact on very-low income, as follows: paragraphs (b)(1)(ii) and (b)(2)(ii) to read
low income, moderate income, and as follows:
§ 1471.1 Provisions common to this
minority populations. subpart. § 1471.11 Payments to manufacturers of
Environmental Assessment * * * * * certain worsted wool fabrics.
(b) * * * * * * * *
The environmental impacts of this (3) * * *
rule have been considered in a manner (b) * * *
(iii) A W–9 providing the Federal tax
consistent with the provisions of the identification number of the person (if (1) * * *
National Environmental Policy Act the information required by Form W–9 (ii) Payment amounts. A total of
(NEPA, 42 U.S.C. 4321–4347), the has changed since the previous $2,666,000 will be allocated annually
regulations of the Council on application). among eligible persons covered by this
Environmental Quality (40 CFR parts (4) Standard Form 1199A. Every paragraph on the basis of the percentage
1500–1508), and FAS regulations for person claiming a payment must of each eligible person’s total
compliance with NEPA (7 CFR part provide Standard Form 1199A, a direct production (actual production, not
799). FAS has determined that NEPA deposit sign-up form, to facilitate any estimates) of qualifying worsted wool
does not apply to this final rule and that transfer of funds (if the information fabric described in paragraph (b)(1)(i) of
no environmental assessment or required by Form 1199A has changed this section for each of the calendar
environmental impact statement will be since the previous application). years 1999, 2000, and 2001 in relation
prepared. * * * * * to the total production of such fabric by
all eligible persons who qualify for
Unfunded Mandates Reform Act § 1471.2 [Amended] payments under this paragraph for each
This final rule does not impose any ■ 3. Amend § 1471.2(c)(1) and (2) by of the calendar years 1999, 2000, and
enforceable duty or contain any removing ‘‘(excluding duty, shipping, 2001.
unfunded mandate as described under and insurance’’ and adding in its place * * * * *
Title II of the Unfunded Mandates ‘‘(excluding duty, shipping, and (2) * * *
Reform Act of 1995 (UMRA). Therefore, insurance)’’. (ii) Payment amounts. A total of
this rule is not subject to the * * * * * $2,666,000 will be allocated annually
requirements of sections 202 and 205 of ■ 4. Revise § 1471.5 to read as follows: among eligible persons covered by this
UMRA.
paragraph on the basis of the percentage
§ 1471.5 Affidavit of pima cotton trade
E-Government Act Compliance associations.
of each eligible person’s total
production (actual production, not
FAS is committed to complying with In addition to applicable information estimates) of qualifying worsted wool
the E-Government Act to promote the requirements in § 1471.1, trade fabric described in paragraph (b)(2)(i) of
use of the Internet and other associations filing a claim for a payment this section for each of the calendar
information technologies to provide must electronically provide a statement years 1999, 2000, and 2001 in relation
increased opportunities for citizen which states that during the calendar to the total production of such fabric by
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access to Government information, year immediately preceding the all eligible persons who qualify for
services, and for other purposes. The payment they were, as determined by payments under this paragraph for each
forms, regulations, and other the Secretary, a domestic nationally of the calendar years 1999, 2000, and
information collection activities recognized association established and 2001.
required to be utilized by a person operating for the promotion of pima
subject to this final rule are available at: cotton for domestic use in textile and * * * * *
http://www.fas.usda.gov. apparel goods. ■ 7. Add § 1471.12 to read as follows:
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![81660 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Rules and Regulations
§ 1471.12 Refund of duties paid on imports behalf or had another person cut and DEPARTMENT OF TRANSPORTATION
of certain wool products. sew the wool on behalf of the eligible
(a) Eligible wool. Eligible wool under person, provided the eligible person Federal Aviation Administration
the Duty Refund program means owned the wool at the time it was cut
imported wool yarn of the kind and sewn. 14 CFR Part 39
described in section 505 of the Trade [Docket No. FAA–2016–9000; Directorate
* * * * *
and Development Act of 2000 Public Identifier 2016–CE–027–AD; Amendment
Law 106–200 (May 18, 2000). (ii) * * * 39–18713; AD 2016–23–06]
(b) Payments—(1) Eligibility. Persons (A) In general. When reporting the
eligible for a Duty Refund payment are RIN 2120–AA64
annual dollar value and quantity of
manufacturers who, in the year imported qualifying worsted wool Airworthiness Directives; Various
immediately preceding the payment, fabric, an eligible person may either Aircraft Equipped With BRP-
were actively engaged in manufacturing have manufactured the wool on its own Powertrain GmbH & Co KG 912 A
wool (as determined by FAS), and in behalf or had another person Series Engine
calendar years 2000, 2001, and 2002— manufacture the wool on behalf of the
(i) Imported eligible wool directly or AGENCY: Federal Aviation
eligible person, provided the eligible
indirectly; and Administration (FAA), Department of
(ii) Used the imported wool to make person owned the wool at the time of
Transportation (DOT).
men’s or boy’s suits; or manufacture.
ACTION: Final rule.
(iii) Further manufactured the eligible * * * * *
imported wool. SUMMARY: We are adopting a new
■ 9. Amend § 1471.14 to revise
(2) Payment amount. Persons eligible airworthiness directive (AD) for various
for a Duty Refund payment shall be paid paragraph (a)(2)(i) to read as follows:
aircraft equipped with a BRP-Powertrain
the same amounts that were made to the § 1471.14 Wool yarn, wool fiber, and wool GmbH & Co KG (formerly Rotax Aircraft
persons by CBP through FY 2015. top duty compensation payment. Engines) 912 A series engine. This AD
■ 8. Amend § 1471.13 to revise results from mandatory continuing
paragraphs (a)(2)(i), (d)(3)(i)(A), and (a) * * * airworthiness information (MCAI)
(d)(3)(ii)(A) to read as follows: (2) * * * issued by an aviation authority of
(i) In general. The term ‘‘eligible another country to identify and correct
§ 1471.13 Monetization of the wool tariff an unsafe condition on an aviation
rate quota. person’’ means a manufacturer (or a
successor-in-interest to the product. The MCAI describes the unsafe
(a) * * * condition as a manufacturing defect
(2) * * * manufacturer) in the U.S. or in a
Foreign-Trade Zone authorized under found in certain carburetor floats where
(i) In general. The term ‘‘eligible an in-flight engine shutdown and forced
person’’ means a manufacturer (or a the Foreign-Trade Zones Act of 1934 (19
landing could occur when the affected
successor-in-interest to the U.S.C. 81a–81u) during the calendar
cylinder had reduced or blocked fuel
manufacturer) in the U.S. or in a year immediately preceding the
supply. We are issuing this AD to
Foreign-Trade Zone authorized under payment that
require actions to address the unsafe
the Foreign-Trade Zones Act of 1934 (19 (A) Imported qualifying wool; and condition on these products.
U.S.C. 81a–81u) during the calendar
year immediately preceding the (B) Manufactured the qualifying wool DATES: This AD is effective December
payment that: directly or had another person 23, 2016.
(A) Imported qualifying worsted wool manufacture the qualifying wool The Director of the Federal Register
fabric; and providing the eligible person owned the approved the incorporation by reference
(B) Used the imported qualifying qualifying wool at the time it was of a certain publication listed in this AD
worsted wool fabric directly or had manufactured. as of December 23, 2016.
another person use the qualifying * * * * * ADDRESSES: You may examine the AD
worsted wool fabric providing the docket on the Internet at http://
Dated: November 2, 2016. www.regulations.gov by searching for
eligible person owned the qualifying
worsted wool fabric at the time it was Philip C. Karsting, and locating Docket No. FAA–2016–
used: Administrator, Foreign Agricultural Service, 9000; or in person at Document
(1) In the case of wool of the kind and Vice President, Commodity Credit Management Facility, U.S. Department
described in subheadings 9902.51.11 or Corporation. of Transportation, Docket Operations,
9902.51.15 of the 2014 HTS, to produce [FR Doc. 2016–27661 Filed 11–17–16; 8:45 am] M–30, West Building Ground Floor,
worsted wool suits, suit-type jackets and BILLING CODE 3410–10–P Room W12–140, 1200 New Jersey
trousers for men and boys; or Avenue SE., Washington, DC 20590.
(2) In the case of wool fabric of the For service information identified in
kind described in subheading this AD, contact BRP-Powertrain GmbH
9902.51.16 of the 2014 HTS, used such & Co. KG, Welser Strasse 32, A–4623
wool fabric in manufacturing. Gunskirchen, Austria; phone: +43 7246
* * * * * 601 0; fax: +43 7246 601 9130; Internet:
(d) * * * www.rotax-aircraft-engines.com. You
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(3) * * * may view this referenced service
(i) * * * information at the FAA, Small Airplane
(A) In general. When reporting the Directorate, 901 Locust, Kansas City,
annual dollar value and quantity of Missouri 64106. For information on the
imported qualifying worsted wool availability of this material at the FAA,
fabric, an eligible person may either call (816) 329–4148. It is also available
have cut and sewn the wool on its own on the Internet at
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Document Created: 2018-02-14 08:32:17
Document Modified: 2018-02-14 08:32:17
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This final rule is effective November 18, 2016. | |
| Contact | Peter W. Burr, Import Policies and Export Reporting Division, Office of Trade Programs, Foreign Agricultural Service, USDA; email: [email protected], 202-720-3274. | |
| FR Citation | 81 FR 81657 | |
| RIN Number | 0551-AA90 | |
| CFR Associated | Agricultural Commodities and Imports |
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