Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order, 46185-46202 [2011-19491]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 76, Number 148 (Tuesday, August 2, 2011)]
[Rules and Regulations]
[Pages 46185-46202]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19491]



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Federal Register / Vol. 76, No. 148 / Tuesday, August 2, 2011 / Rules 
and Regulations

[[Page 46185]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1217

[Document Number AMS-FV-10-0015; FR]
RIN 0581-AD03


Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order

AGENCY: Agricultural Marketing Service.

ACTION: Final rule.

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SUMMARY: This rule establishes a Softwood Lumber Research, Promotion, 
Consumer Education and Industry Information Order (Order). Softwood 
lumber is used in products like flooring, siding and framing. The 
program will be financed by an assessment on softwood lumber domestic 
manufacturers and importers and will be administered by a board of 
industry members selected by the Secretary of Agriculture (Secretary). 
The initial assessment rate will be $0.35 per thousand board feet of 
softwood lumber shipped within or imported to the United States. The 
purpose of the program is to strengthen the position of softwood lumber 
in the marketplace, maintain and expand markets for softwood lumber, 
and develop new uses for softwood lumber within the United States. The 
U.S. Department of Agriculture (USDA) conducted a referendum among 
eligible domestic softwood lumber manufacturers and importers from May 
23 through June 10, 2011. Sixty-seven percent of those voting in the 
referendum representing 80 percent of the volume of softwood lumber 
represented in the referendum favored implementation of the program.

DATES: Effective August 3, 2011. Collection of assessments (Sec. Sec.  
1217.52 and 1217.53) and appropriate reporting and recordkeeping 
(Sec. Sec.  1217.70 and 1217.71) will begin January 1, 2012.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing 
Specialist, Research and Promotion Branch, Fruit and Vegetable 
Programs, AMS, USDA, P.O. Box 831, Beavercreek, Oregon 97004; 
telephone: (503) 632-8848; facsimile (503) 632-8852; or electronic 
mail: Maureen.Pello@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the 
Commodity Promotion, Research, and Information Act of 1996 (1996 Act) 
(7 U.S.C. 7411-7425).
    As part of this rulemaking process, a proposed rule was published 
in the Federal Register on October 1, 2010 (75 FR 61002). That rule 
provided for a 60-day comment period which ended on November 30, 2010. 
Fifty-five comments were received. The comments were addressed in a 
second proposed rule and referendum order that was published in the 
Federal Register on April 22, 2011 (78 FR 22757). A final rule 
prescribing referendum procedures was also published in the Federal 
Register on April 22, 2011 (76 FR 22752).
    Domestic manufacturers and importers who manufactured and shipped 
or imported 15 million board feet or more of softwood lumber during the 
representative period January 1 through December 31, 2010, were 
eligible to vote in the referendum held from May 23 through June 10, 
2011. Sixty-seven percent of those voting in the referendum 
representing 80 percent of the volume represented in the referendum 
approved implementation of the program. The referendum was conducted by 
mail ballot.

Executive Order 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget (OMB).

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, 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 establishes an industry-funded research, promotion, and 
information program for softwood lumber. Softwood lumber is used in 
products like flooring, siding and framing. The program will be 
financed by an assessment on softwood lumber domestic manufacturers and 
importers and will be administered by a board of industry members 
selected by the Secretary. The initial assessment rate is $0.35 per 
thousand board feet of softwood lumber shipped within or imported to 
the United States. Entities that domestically manufacture and ship or 
import less than 15 million board feet per fiscal year will be exempt 
from the payment of assessments. Additionally, assessed entities will 
not pay assessments on the first 15 million board feet of softwood 
lumber shipped domestically or imported during the year. Exports from 
the United States will also be exempt from assessments. The purpose of 
the program is to strengthen the position of softwood lumber in the 
marketplace, maintain and expand markets for softwood lumber, and 
develop new uses for softwood lumber within the United States. The 
proposal was submitted to USDA by the Blue Ribbon Commission (BRC), a 
committee of 21 chief executive officers and heads of businesses that 
domestically manufacture and import softwood lumber.

[[Page 46186]]

Authority in 1996 Act

    The Order is authorized under the 1996 Act which authorizes USDA to 
establish agricultural commodity research and promotion orders which 
may include a combination of promotion, research, industry information, 
and consumer information activities funded by mandatory assessments. 
These programs are designed to maintain and expand markets and uses for 
agricultural commodities. As defined under section 513(1)(D) of the 
1996 Act, agricultural commodities include the products of forestry, 
which includes softwood lumber.
    The 1996 Act provides for a number of optional provisions that 
allow the tailoring of orders for different commodities. Section 516 of 
the 1996 Act provides permissive terms for orders, and other sections 
provide for alternatives. For example, section 514 of the 1996 Act 
provides for orders applicable to (1) producers, (2) first handlers and 
others in the marketing chain as appropriate, and (3) importers (if 
imports are subject to assessments). Section 516 states that an order 
may include an exemption of de minimis quantities of an agricultural 
commodity; different payment and reporting schedules; coverage of 
research, promotion, and information activities to expand, improve, or 
make more efficient the marketing or use of an agricultural commodity 
in both domestic and foreign markets; provision for reserve funds; 
provision for credits for generic and branded activities; and 
assessment of imports.
    In addition, section 518 of the 1996 Act provides for referenda to 
ascertain approval of an order to be conducted either prior to its 
going into effect or within three years after assessments first begin 
under the order. An order also may provide for its approval in a 
referendum based upon different voting patterns. Section 515 provides 
for establishment of a board or council from among producers, first 
handlers and others in the marketing chain as appropriate, and 
importers, if imports are subject to assessment.

Industry Background

    The softwood lumber industry is comprised of sawmills that make 
products from softwood trees. Softwoods include the botanical group of 
trees that have needle-like or scale-like leaves, or conifers. Softwood 
lumber includes certain products manufactured from softwoods (or 
coniferous trees). Softwood lumber is used in products like flooring, 
siding, and framing.
    Softwood lumber sizes are identified by the thickness and width of 
the board when it is first cut from the log. This is known as ``rough 
cut'' when the wood is still green and wet. Once the wood dries, it 
shrinks. After the wood dries, the surface of the board is smoothed to 
make the wood a uniform size. This is known as ``planing'' the wood. 
Once planed, the wood is considered finished. In the industry, the term 
nominal is used to describe the size of the rough cut board, prior to 
finishing. For example, a 2 x 4 board is a nominal size. The actual 
size of a 2 x 4 board is 1.5 inches in thickness by 3.5 inches in 
width. The length of the board is typically the actual length. Usually 
there is a \1/2\ inch difference in measurements over 2 inches and \1/
4\ inch difference in measurements less than 2 inches. For purposes of 
the Order and the tables in this rule, nominal sizes are used. One 
nominal board foot is a unit of measurement of softwood lumber 
represented by a board 12 inches long, 12 inches wide, and 1 inch thick 
or its cubic equivalent. A board foot calculation for softwood lumber 1 
inch or more in thickness is based on its nominal thickness and width 
by the actual length. Softwood lumber with a nominal thickness of less 
than 1 inch is calculated as 1 inch.

Regional U.S. Timber Production 1
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    \1\ Spelter, H., D. McKeever, D. Toth, Profile 2009: Softwood 
Sawmills in the United States, USDA, p. 7.
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    According to USDA's Forest Service, the main species of softwoods 
in the southern United States are pines that grow fast and can be sold 
for lumber in 25 to 30 years. Southern pines are often treated with 
preservatives. About a third of the region's lumber is sold to treaters 
for further processing (i.e., apply preservatives).\2\
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    \2\ Micklewright, J.T., Wood preservation statistics, American 
Wood Preservers Assocation, p. 25.
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    Most of the northern U.S. softwood lumber industry is in Maine 
where the predominant species are white spruce and balsam fir. These 
trees are typically used for light framing such as wall studs. Second 
growths of red pine planted in the 1930s and later have been harvested 
by a few firms in the lake states. Red pine is also easy to treat and 
much of it is processed. White pine trees are also prevalent in the 
northern United States. They are used for paneling, millwork, and 
joinery. Millwork includes woodwork that has been made at a mill, and 
joinery is the trade of constructing articles by joining together 
pieces of wood.
    The bulk of timber production in the western United States is on 
the coast of the Pacific Northwest. Douglas fir and hemlock trees 
dominate while farther south in northern California, redwood trees, 
suitable for outdoor structures like fences, siding and decks, are 
common. East of these regions, ponderosa pine dominates and is used for 
millwork and joinery. Northern Idaho and Montana contain lodgepole pine 
and other species suitable for light framing.

U.S. Softwood Lumber Output by Region 3
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    \3\ Production data was compiled by Henry Spelter of Wood 
Futures Insight and Forest Economic Advisors.
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    For 2008-2009 (most recent data available to USDA), total output 
(production) of softwood lumber by U.S. sawmills averaged about 24.5 
billion board feet annually. Of the 24.5 billion board feet, 11.7 
billion board feet were from the U.S. South, 11.3 billion board feet 
were from the U.S. West, and 2.4 billion board feet were from the 
Northeast and Lake States. Data for the western states is from the 
Western Wood Products Association \4\ and data for the other two 
regions is from the U.S. Census Bureau.\5\
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    \4\ Western Wood Products Association, 2008 Statistical 
Yearbook, p. 32.
    \5\ U.S. Census Bureau, 2009, Construction, https://www.census.gov/mcd/.
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Softwood Lumber Markets 6
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    \6\ Spelter, McKeever and Toth, Profile 2009, p. 2-5.
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    The residential market is the largest consumer of softwood lumber 
in the United States. This includes single and multifamily homes, 
mobile homes, and remodeling. The residential market accounted for 75 
percent of the total U.S. softwood lumber market in 2006 and 63 percent 
of the market in 2009. Table 1 below shows this data from 2003 through 
2009.

[[Page 46187]]



                                               Table 1--U.S. Softwood Lumber Markets From 2003-2009 Volume
                                                                  [Billion board feet]
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                                      Single       Multi-                                      Non-            Non-
                                      family       family       Mobile      Residential    residential,    residential,   Industrial and    Total U.S.
                                      homes        homes        homes       remodeling       buildings         other           other
--------------------------------------------------------------------------------------------------------------------------------------------------------
2003.............................         20.2          1.7          1.1            19.3             3.6             0.6            10.2            56.7
2004.............................         22.2          1.8          1.1            20.3             3.9             0.5            11.1            60.8
2005.............................         24.5          1.9          1.2            20.9             3.8             0.6            11.7            64.6
2006.............................         21.3          1.9          0.9            21.4             3.6             0.6            11.3            61.0
2007.............................         14.9          1.7          0.8            19.7             4.0             0.6            11.4            53.1
2008.............................          8.4          1.4          0.6            17.5             3.9             0.6             9.6            42.0
2009.............................          5.3          0.7          0.4            14.2             3.6             0.6             7.8            32.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Shares (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2003.............................           36            3            2              34               6               1              18  ..............
2004.............................           36            3            2              33               6               1              18  ..............
2005.............................           38            3            2              32               6               1              18  ..............
2006.............................           35            3            2              35               6               1              18  ..............
2007.............................           28            3            1              37               8               1              21  ..............
2008.............................           20            3            1              42               9               1              23  ..............
2009.............................           16            2            1              44              11               2              24  ..............
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    During normal economic conditions, single family homes comprise the 
largest share of the softwood lumber market in the United States. 
Single family home use rose from 20.2 billion board feet in 2003 to 
24.5 billion board feet in 2005 and fell to 5.3 billion board feet in 
2009. Single family homes comprised 38 percent of the market for 
softwood lumber in 2005 and 16 percent of the market by 2009.
    Home building is cyclical in nature (follows a pattern of highs and 
lows) as compared to other end uses for softwood lumber. Residential 
remodeling and other uses experienced downturns between 2006 and 2009, 
but less severe than the market for single family homes. Softwood 
lumber used for residential remodeling fell from 21.4 billion board 
feet in 2006 to 14.2 billion board feet in 2009. As a percentage of 
softwood lumber market share, residential remodeling rose from 35 
percent in 2006 to 44 percent in 2009.

Export Markets7
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    7 Spelter, McKeever and Toth, Profile 2009, p. 15.
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    Export markets are another outlet for softwood lumber. Two decades 
ago, U.S. exports were about seven times greater than they were in 
recent years, but a strong U.S. dollar from the mid-1990s onward helped 
to reduce exports. Additionally, different size and grade standards for 
softwood lumber in export markets complicate production when log sizes 
have to be converted from imperial units (feet) to metric (meters). 
Most manufacturers have thus focused on North American sales. However, 
in slow periods such as in recent years, efforts have been made to 
supply export markets to the extent possible.

Competition 8
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    8 Ibid.
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    Softwood lumber competes with several alternative products. Steel 
and concrete dominate larger residential and nonresidential projects. 
Brick, concrete, and vinyl are often used in low-rise residential and 
nonresidential buildings. Within the last decade, wood-plastic 
composite lumber has become popular for outdoor decking, railing, trim, 
and fencing. Other wood-based products such as laminated veneer are 
becoming more popular in place of softwood lumber.

Imports

    According to U.S. Department of Commerce, Census Bureau, Foreign 
Trade Statistics data (Census) 9, imports of softwood lumber from 2008 
through 2010 averaged about 10.2 billion board feet annually. During 
those years, imports from Canada averaged 9.6 billion board feet 
annually, comprising about 94 percent of total imports; imports from 
western Europe averaged 224 million board feet annually, comprising 
about 2.2 percent of total imports; and imports from Chile averaged 174 
million board feet annually, comprising about 1.8 percent of total 
imports. Imports from other countries accounted for the remaining 2 
percent of total imports for 2008 through 2010.
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    9 https://www.fas.usda.gov/gats; accessed 3/12/11.
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Price and Cost Trends 10
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    10 Spelter, McKeever and Toth, Profile 2009, p. 5-6.
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    Prices in the lumber industry can change rapidly in response to 
shifts in demand or supply. Prices are set competitively with many 
buyers and sellers bidding in a business that tends to be cyclical in 
nature. As shown in Table 2 below, revenue for the State of Oregon per 
thousand board feet was about $309 in 2003, rose to $420 in 2004, and 
fell to $219 in 2008. In comparison, revenue for the State of Georgia 
per thousand board feet was about $323 in 2003, rose to $418 in 2005, 
and fell to $262 in 2008.

                               Table 2--Typical Sawmill Operating Costs 2003-2008
----------------------------------------------------------------------------------------------------------------
                                                        Oregon                              Georgia
                                         -----------------------------------------------------------------------
                                            Costs  ($ per    Revenue  ($ per    Costs  ($ per    Revenue  ($ per
                                           thousand board    thousand board    thousand board    thousand board
                                                feet)             feet)             feet)             feet)
----------------------------------------------------------------------------------------------------------------
2003....................................               295               309               311               323
2004....................................               330               420               335               378
2005....................................               349               370               349               418
2006....................................               335               316               349               330
2007....................................               297               260               300               269

[[Page 46188]]

 
2008....................................               238               219               328               262
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    Several factors contributed to the revenue changes shown in Table 
2. Some mills in the interior western United States were forced to 
close because of constraints on the availability of timber. A dispute 
with Canada over lumber imports that resulted in a 15 percent export 
levy for some U.S.-bound shipments and quotas on others after October 
2006 impacted supply.
    Wood, labor, and operating costs also impact revenue. The cost of 
wood in the United States is negotiated between buyers and sellers. 
Companies often enter into long-term supply contracts with timber 
owners where the price is negotiated quarterly based on sales and 
market conditions. Labor is the second biggest component of lumber 
costs. According to the U.S. Department of Labor, U.S. wages have 
increased about 3 percent per year during this decade.\11\ At the same 
time, labor productivity in sawmilling has increased by a like amount 
leaving unit labor costs flat. The other main cost for sawmills is 
energy, but most mills use their own residues to generate heat for 
their drying needs. This has lessened the impact of rising energy 
prices on sawmills. As shown in Table 2, total operating costs in 
Oregon per thousand board feet averaged $295 in 2003, rose to $349 in 
2005, and fell to $238 in 2008. In comparison, total operating costs in 
Georgia per thousand board feet averaged $311 in 2003, rose to $349 in 
2005 and 2006, and fell to $328 in 2008.
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    \11\ U.S. Department of Labor, Bureau of Labor Statistics, 2009, 
Employment cost index, Washington, DC, https://data.bls.gov/PDQ/outside.jsp?survey=ci. accessed 3/27/09.
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Need for a Program

    The softwood lumber industry is experiencing one of the worst 
markets in history. The collapse of the housing market caused prices to 
fall from $404 per thousand board feet in 2004 to $222 per thousand 
board feet in 2009. Prices rose slightly in 2010 to $284 per thousand 
board feet.\12\ Competition from other building products like cement 
and vinyl has also helped to reduce demand for softwood lumber.
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    \12\ Price data was obtained from Random Lengths Publications, 
Inc., and is a framing composite price that is designed as a broad 
measure of price movement in the lumber market (https://www.randomlengths.com).
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    Additionally, at the request of the U.S. and Canadian governments, 
the U.S. Endowment for Forestry and Communities (Endowment) and the 
Binational Softwood Lumber Council (BSLC) were formed in 2006 in 
accordance with the 2006 Softwood Lumber Agreement. The Endowment is a 
non-profit organization that works with public and private sectors to 
advance the interests of the forestry community. The Endowment 
conducted a study to assess the feasibility of a softwood lumber 
research and promotion program. In the past, the industry attempted 
voluntary efforts to promote forest products, but they were sporadic, 
underfunded, and narrowly targeted. These campaigns did not last long 
enough to succeed. The Endowment recommended to the industry that 
Canadian and U.S. companies pursue a shared vision and achieve broad 
agreement on creating a unified softwood lumber research and promotion 
program. In 2008, the Endowment held an industry meeting in Seattle, 
Washington, to discuss the merits of such a program and obtain industry 
feedback.
    As a result of the Endowment's efforts, the BRC was subsequently 
formed to pursue an industry research and promotion program. The BRC is 
comprised of 21 members representing the United States and Canada. 
Funding and support for the BRC's efforts come from the BSLC, a non-
profit organization whose mission is to promote increased cooperation 
between the U.S. and Canadian softwood lumber industries and to 
strengthen and expand markets for softwood lumber products in both 
countries. The BRC submitted an initial proposal for a program to USDA 
in February 2010.
    As recommended by the BRC, the program will be financed by an 
assessment on softwood lumber domestic manufacturers and importers and 
administered by a board of industry members selected by the Secretary. 
The initial assessment rate will be $0.35 per thousand board feet 
shipped within or imported to the United States and can be increased up 
to a maximum of $0.50 per thousand board feet. Entities that 
domestically ship or import less than 15 million board feet will be 
exempt along with shipments exported outside of the United States. 
Assessed entities will not pay assessments on the first 15 million 
board feet shipped or imported. The purpose of the program is to 
strengthen the position of softwood lumber in the marketplace, maintain 
and expand markets for softwood lumber, and develop new uses for 
softwood lumber within the United States. A referendum was held among 
eligible domestic manufacturers and importers to determine whether they 
favored implementation of the program prior to it going into effect. 
Sixty-seven percent of those voting in the referendum representing 80 
percent of the volume represented in the referendum approved 
implementation of the program. The specific provisions of the program 
are discussed below.

Provisions of Program

    Pursuant to the 1996 Act, Sec. Sec.  1217.1 through 1217.30 of the 
Order define certain terms that will be used throughout the Order. 
Several of the terms are common to all research and promotion programs 
authorized under the 1996 Act while other terms are specific to the 
softwood lumber Order.
    Sections 1217.40 through 1217.47 of the Order detail the 
establishment and membership of the Softwood Lumber Board, nominations 
and appointments, the term of office, removal and vacancies, procedure, 
reimbursement and attendance, powers and duties, and prohibited 
activities.
    Sections 1217.50 through 1217.53 of the Order detail requirements 
regarding the Board's budget and expenses, financial statements, 
assessments, and exemption from assessments. The Board's programs and 
expenses shall be funded through assessments on manufacturers for the 
U.S. market, other income, and other funds available to the Board. The 
Order provides for an initial assessment rate of $0.35 per thousand 
board feet. Domestic manufacturers will pay assessments based on the 
volume of softwood lumber shipped within the United States and 
importers will pay assessments based on the volume of

[[Page 46189]]

softwood lumber imported to the United States.
    Two years after the Order becomes effective and periodically 
thereafter, the Board shall review the assessment rate and, if 
appropriate, recommend a change in the rate. At least two-thirds of the 
Board members must favor a change in the assessment rate. The 
assessment rate can be no less than $0.35 per thousand board feet and 
no more than $0.50 per thousand board feet. Any change in the 
assessment rate within this range is subject to rulemaking by the 
Secretary.
    Domestic manufacturers must pay their assessments owed to the Board 
by the 30th calendar day of the month following the end of the quarter 
in which the softwood lumber was shipped. Importer assessments will be 
collected through Customs.
    The Order provides authority for the Board to impose a late payment 
charge and interest for assessments overdue to the Board by 60 calendar 
days. The late payment charge and rate of interest shall be prescribed 
in the Order's regulations issued by the Secretary.
    The Order provides for four exemptions. First, manufacturers for 
the U.S. market who domestically ship or import less than 15 million 
board feet during a fiscal year are exempt from paying assessments. 
Domestic manufacturers and importers must apply to the Board for an 
exemption prior to the start of the fiscal year. The Board will issue, 
if deemed appropriate, a certificate of exemption to the eligible 
manufacturer for the U.S. market. Once approved, domestic manufacturers 
will not have to pay assessments to the Board for the applicable fiscal 
year. Approved importers must retain a copy of the certificate of 
exemption and may be requested to submit the certificate to Customs. 
USDA is working to develop a process whereby approved importers could 
submit a copy the exemption certificate to Customs so that Customs 
would not collect the assessment. However, the only available 
alternative at this time is for Customs to collect the assessment, and 
for the Board to refund such importers their assessments no later than 
60 calendar days after receipt of such assessment by the Board. Section 
1217.53(a)(2) in this final rule was modified to clarify that importers 
may be requested to submit a copy of the certificate of exemption to 
Customs.
    The second exemption under the Order is for manufacturers for the 
U.S. market who domestically ship or import more than 15 million board 
feet of softwood lumber annually. Domestic manufacturers will not pay 
assessments on their first 15 million board feet of softwood lumber 
shipped during the applicable fiscal year. Importers will receive a 
refund from the Board for the applicable assessments collected by 
Customs no later than 60 calendar days after receipt of such 
assessments by the Board.
    The third exemption under the Order is for exports of softwood 
lumber, and the fourth exemption is for organic lumber.
    Sections 1217.60 through 1217.62 of the Order details requirements 
regarding promotion, research and information programs, plans and 
projects authorized under the Order.
    Sections 1217.70 through 1217.72 specify the reporting and 
recordkeeping requirements under the Order as well as requirements 
regarding confidentiality of information.
    Section 1217.81(a) of the Order specifies that the program will not 
go into effect unless it is approved by a majority of domestic 
manufacturers and importers voting in a referendum who also represent a 
majority of the volume of softwood lumber represented in the referendum 
who, during a representative period determined by the Secretary, were 
engaged in the domestic manufacturing or importation of softwood lumber 
into the United States. As previously mentioned, in a referendum held 
from May 23 through June 10, 2011, 67 percent of those voting in the 
referendum representing 80 percent of the volume of softwood lumber 
represented in the referendum favored implementation of the program.
    Section 1217.81(b) of the Order specifies criteria for subsequent 
referenda. Under the Order, a referendum may be held to ascertain 
whether the program should continue, be amended, or be terminated.
    Section 1217.80 and Sec. Sec.  1217.82 through 1217.88 describe the 
rights of the Secretary; authorize the Secretary to suspend or 
terminate the Order when deemed appropriate; prescribe proceedings 
after termination; address personal liability, separability, and 
amendments; and provide OMB control numbers. These provisions are 
common to all research and promotion program authorized under the 1996 
Act.

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 prepared this regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(domestic manufacturers and importers) as those having annual receipts 
of no more than $7.0 million.
    According to USDA's Forest Service, it is estimated that, between 
2007 and 2009, there were an average of 595 domestic manufacturers of 
softwood lumber in the United States annually.\13\ This number 
represents separate business entities; one business entity may include 
multiple sawmills. Using an average price of $280 per thousand board 
feet, a domestic manufacturer who ships less than 25 million board feet 
per year would be considered a small entity. It is estimated that, 
between 2007 and 2009, about 363 domestic manufacturers, or about 61 
percent,\14\ shipped less than 25 million board feet annually.
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    \13\ Spelter, McKeever and Toth, Profile 2009, p. 15.
    \14\ Percentages were obtained from the American Lumber Standard 
Committee, Inc. (ALSC). The ALSC administers an accreditation 
program for the grademarking of lumber produced under the American 
Softwood Lumber Standard (Voluntary Product Standard 20).
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    Likewise, according to Customs data, it is estimated that, between 
2007 and 2009, there were about 883 importers of softwood lumber 
annually. About 798 importers, or about 90 percent, imported less than 
$7.0 million worth of softwood lumber annually. Thus, the majority of 
domestic manufacturers and importers of softwood lumber may be 
considered small entities.
    Regarding value of the commodity, with domestic production 
averaging 24.5 billion board feet (2008 and 2009), and using an average 
price for those years of $237 per thousand board feet,\15\ the average 
annual value for softwood lumber is about $5.8 billion. According to 
Customs data, the average annual value for softwood lumber imports for 
2008 and 2009 is about $3.1 billion.
---------------------------------------------------------------------------

    \15\ Spelter, McKeever and Toth, Profile 2009, p. 2-5.
---------------------------------------------------------------------------

    This rule establishes an industry-funded research, promotion, and 
information program for softwood lumber. Softwood lumber is used in 
products like flooring, siding and framing. The program will be 
financed by an assessment on softwood lumber domestic manufacturers and 
importers and administered by a board of industry members selected by 
the Secretary. The initial assessment rate will be $0.35 per thousand 
board feet shipped within or imported to the United States and may

[[Page 46190]]

be increased to $0.50 per thousand board feet. Entities that 
domestically ship or import less than 15 million board feet are exempt 
along with shipments exported outside of the United States. No entity 
will pay assessments on the first 15 million board feet domestically 
shipped or imported. The purpose of the program is to strengthen the 
position of softwood lumber in the marketplace, maintain and expand 
markets for softwood lumber, and develop new uses for softwood lumber 
within the United States. A referendum was held May 23 through June 10, 
2011, among eligible domestic manufacturers and importers to determine 
whether they favor implementation of the program prior to it going into 
effect. Sixty-seven percent of those voting in the referendum, 
representing 80 percent of the volume of softwood lumber represented in 
the referendum, favored implementation of the program. The program is 
authorized under the 1996 Act.
    Regarding the economic impact of the Order on affected entities, 
softwood lumber domestic manufacturers and importers will pay 
assessments to the Board. As previously mentioned, the initial 
assessment rate is $0.35 per thousand board feet shipped within or 
imported to the United States and may be increased to no more than 
$0.50 per thousand board feet.
    The Order provides for an exemption for domestic manufacturers and 
importers who domestically ship or import less than 15 million board 
feet annually. Of the 595 domestic manufacturers, it is estimated that 
about 232, or 39 percent, ship less than 15 million board feet per year 
and will thus be exempt from paying assessments under the Order. Of the 
883 importers, it is estimated that about 780, or 88 percent, import 
less than 15 million board feet per year and will also be exempt from 
paying assessments. Thus, about 363 domestic manufacturers and 103 
importers will pay assessments under the Order. It is estimated that if 
$17.5 million were collected in assessments ($0.35 per thousand board 
feet assessment rate with 50 billion board feet assessed), 25 percent, 
or about $4 million, will be paid by importers and 75 percent, or about 
$13 million, will be paid by domestic manufacturers.
    Regarding the impact on the industry as a whole, the program is 
expected to grow markets for softwood lumber by stopping the erosion of 
market share in single family residential market, increasing the market 
share in multi-family residential construction, significantly 
increasing the use of softwood lumber in non-residential markets, and 
rebuilding softwood lumber's share in the outdoor living market. The 
BRC estimates the long-term market growth opportunity in the non-
residential market and the raised wood segment of the residential 
market is between 10 and 12 billion board feet. USDA's Forest Service 
in a 2007 study estimated a more conservative potential growth at 
around 8 billion board feet.\16\ While the benefits of the program are 
difficult to quantify, the benefits are expected to outweigh the 
program's costs.
---------------------------------------------------------------------------

    \16\ Spelter, H.D. McKeever, M. Alderman, Profile 2007: Softwood 
Sawmills in the United States and Canada, USDA, p. 10.
---------------------------------------------------------------------------

    Regarding alternatives, the BRC considered various options in 
assessment rate and exemption levels. The BRC believes that $20 million 
in assessment income is an ideal threshold for an effective program 
that will help to improve the market for softwood lumber. Table 3 below 
shows the range in assessments projected at various industry shipment 
levels per year.

             Table 3--Projected Income Generated at Various Assessment Rates and Shipment Levels \1\
----------------------------------------------------------------------------------------------------------------
                                                      Annual shipment levels  (billion board feet)
  Assessment options  (per thousand   --------------------------------------------------------------------------
             board feet)                          40                       50                       60
----------------------------------------------------------------------------------------------------------------
$0.25................................  $10 million............  $12.5 million..........  $15 million.
$0.35................................  $14 million............  $17.5 million..........  $21 million.
$0.50................................  $20 million............  $25 million............  $30 million.
----------------------------------------------------------------------------------------------------------------
\1\ Assumes no exemption.

    Regarding exemption levels, the BRC explored projected assessment 
income at exemption levels of 15, 20, and 30 million board feet. With a 
15 million board foot exemption, the BRC projected a deduction of 11.3 
percent in assessment income. Table 4 below shows the BRC's projected 
income levels at various assessment options in light of the 15 million 
board foot exemption.

             Table 4--Projected Income Generated at Various Assessment Rates and Shipment Levels \1\
----------------------------------------------------------------------------------------------------------------
                                                      Annual shipment levels  (billion board feet)
  Assessment options  (per thousand   --------------------------------------------------------------------------
             board feet)                          40                       50                       60
----------------------------------------------------------------------------------------------------------------
$0.25................................  $8.9 million...........  $11.1 million..........  $13.3 million.
$0.35................................  $12.4 million..........  $15.5 million..........  $18.9 million.
$0.50................................  $17.7 million..........  $22.2 million..........  $26.6 million
----------------------------------------------------------------------------------------------------------------
\1\ Assumes 15 million board foot exemption.

    Ultimately the BRC concluded that an assessment rate range of $0.35 
to a maximum of $0.50 per thousand board feet with an exemption 
threshold of 15 million board feet was appropriate and would generate 
sufficient income to support an effective promotion program for 
softwood lumber. At an initial assessment rate of $0.35 per thousand

[[Page 46191]]

board feet, the BRC projects assessment income between $12.4 million 
and almost $19 million with shipment levels ranging from 40 to 60 
billion board feet, respectively.
    The industry explored the merits of a voluntary promotion program. 
Over the years, the industry organized various public outreach, 
education and promotion campaigns funded through voluntary assessments. 
Although some were partially effective, none fully accomplished their 
objectives and the gains either disappeared quickly or eroded over 
time.
    This action imposes additional reporting and recordkeeping burden 
on domestic manufacturer and importers of softwood lumber. Domestic 
manufacturers and importers interested in serving on the Board must 
submit a nomination form to the Board indicating their desire to serve 
or nominating another industry member to serve on the Board. Interested 
persons may also submit a background statement outlining their 
qualifications to serve on the Board. Except for the initial Board 
nominations, domestic manufacturers and importers will have the 
opportunity to cast a ballot and vote for candidates to serve on the 
Board. Domestic manufacturer and importer nominees to the Board must 
submit a background form to the Secretary to ensure they are qualified 
to serve on the Board.
    Additionally, domestic manufacturers and importers who domestically 
ship or import less than 15 million board feet annually may submit a 
request to the Board for an exemption from paying assessments on this 
volume. Domestic manufacturers and importers will also be asked to 
submit a report regarding their shipments/imports that will accompany 
their assessments paid to the Board. Domestic manufacturers and 
importers who qualify as 100 percent organic under the NOP and are not 
a split operation may submit a request to the Board for an exemption 
from assessments. Importers may also request a refund of any 
assessments paid to Customs.
    Finally, domestic manufacturers and importer who participated in 
the referendum to vote on whether the Order should become effective 
completed a ballot for submission to the Secretary. These forms were 
submitted to the OMB and approved under OMB Control No. 0581-0265. 
Specific burdens for the forms are detailed later in this document in 
the section titled Paperwork Reduction Act. 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, as previously mentioned, the Endowment 
conducted a study to assess the feasibility of a softwood lumber 
research and promotion program. According to the BRC, at the beginning 
of the study (early 2008), in-depth interviews were conducted among 
North American softwood lumber industry leaders to explore the level of 
interest in a generic promotion program to help grow the market for 
softwood lumber. The Endowment interviewed 35 companies, which included 
a cross section of various levels of size and ownership types within 
the softwood lumber industry. Of the 35 companies surveyed, 86 percent 
by number representing 54 percent of the volume favored exploring a 
mandatory promotion program for softwood lumber.
    In early 2009, the BRC was formed and began a comprehensive process 
to develop a program. According to the BRC, its membership is diverse 
and represents 44 percent of softwood lumber shipments within the U.S. 
market. Efforts were made to inform various associations throughout the 
country through presentations at their meetings. Articles and notices 
were also published in various newspapers and newsletters about the 
program.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), AMS requested approval of a new information collection and 
recordkeeping requirements for the softwood lumber program.
    Title: Advisory Committee or Research and Promotion Background 
Information.
    OMB Number for background form AD-755: (Approved under OMB No. 
0505-0001).
    Expiration Date of Approval: July 31, 2012.
    Title: National Research, Promotion, and Consumer Information 
Programs.
    OMB Number: 0581-0265.
    Expiration Date of Approval: 3 years from approval date.
    Type of Request: New information collection for research and 
promotion programs.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the 1996 Act. The information 
collection concerns a new, national research and promotion program for 
the softwood lumber industry. The program will be financed by an 
assessment on softwood lumber domestic manufacturers and importers and 
administered by a board of industry members selected by the Secretary. 
The program provides for an exemption for the first 15 million board 
feet of softwood lumber shipped by domestic manufacturers within the 
United States or imported into the United States during the year. A 
referendum was held May 23 through June 10, 2011, among eligible 
domestic manufacturers and importers to determine whether they favor 
implementation of the program prior to it going into effect. Sixty-
seven percent of those voting in the referendum, representing 80 
percent of the volume represented in the referendum, favored 
implementation of the program. The purpose of the program is to help 
build the market for softwood lumber.
    In summary, the information collection requirements under the 
program concern Board nominations, the collection of assessments, and 
referenda. For Board nominations, domestic manufacturers and importers 
interested in serving on the Board must submit a ``Nomination Form'' to 
the Board indicating their desire to serve or to nominate another 
industry member to serve on the Board. Interested persons may also 
submit a background statement outlining qualifications to serve on the 
Board. Except for the initial Board nominations, domestic manufacturers 
and importers will have the opportunity to submit a ``Nomination 
Ballot'' to the Board where they will vote for candidates to serve on 
the Board. Nominees must also submit a background information form, 
``AD-755,'' to the Secretary to ensure they are qualified to serve on 
the Board.
    Regarding assessments, domestic manufacturers and importers who 
ship or import less than 15 million board feet annually may submit a 
request, ``Application for Exemption from Assessments,'' to the Board 
for an exemption from paying assessments. Domestic manufacturers and 
importers must submit a ``Shipment/Import Report'' that will accompany 
their assessments paid to the Board and report the quantity of softwood 
lumber shipped domestically or imported during the applicable period, 
the quantity exported from the United States, the quantity for which 
assessments were paid, and the country

[[Page 46192]]

of export (for imports). Domestic manufacturers who ship less than 15 
million board feet annually and are exempt from paying assessments do 
not have to submit this report. Additionally, only importers who pay 
their assessments directly to the Board must submit this report. As 
previously mentioned, the majority of importer assessments will be 
collected by Customs. Customs will remit the funds to the Board and the 
other information will be available from Customs (i.e., country of 
export, quantity of softwood lumber imported). Finally, domestic 
manufacturers and importers who qualify as 100 percent organic under 
the NOP and are not a split operation may submit an ``Organic Exemption 
Form'' to the Board and request an exemption from assessments. 
Importers may also request a refund of any assessments paid to Customs.
    There will also be an additional burden on domestic manufacturers 
and importers voting in referenda. The referendum ballot, which 
represents the information collection requirement relating to 
referenda, was addressed in a final rule on referendum procedures which 
was published in the Federal Register on April 22, 2011 (76 FR 22752).
    Information collection requirements that are included in this rule 
include:

(1) Nomination Form

    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hour per application.
    Respondents: Domestic manufacturers and importers.
    Estimated Number of Respondents: 50.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 12.5 hours.

(2) Background Statement

    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hour per application.
    Respondents: Domestic manufacturers and importers.
    Estimated Number of Respondents: 50.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 12.5 hours.

(3) Nomination Ballot

    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hour per application.
    Respondents: Domestic manufacturers and importers.
    Estimated Number of Respondents: 300.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 75 hours.

(4) Background Information Form AD-755 (OMB Form No. 0505-0001)

    Estimate of Burden: Public reporting for this collection of 
information is estimated to average 0.5 hour per response for each 
Board nominee.
    Respondents: Domestic manufacturers and importers.
    Estimated number of Respondents: 13 (38 for initial nominations to 
the Board, 0 for the second year, and up to 13 annually thereafter).
    Estimated number of Responses per Respondent: 1 every 3 years. 
(0.3)
    Estimated Total Annual Burden on Respondents: 19 hours for the 
initial nominations to the Board, 0 hours for the second year of 
operation, and up to 6.5 hours annually thereafter.

(5) Application for Exemption From Assessments

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour per domestic manufacturer 
or importer reporting on softwood lumber shipped domestically or 
imported. Upon approval of an application, domestic manufacturers and 
importers will receive exemption certification.
    Respondents: Domestic manufacturers (232) and importers (780) who 
ship domestically or import less than 15 million board feet of softwood 
lumber annually.
    Estimated number of Respondents: 1,012.
    Estimated number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 253 hours.

(6) Shipment/Import Report

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.5 hour per domestic manufacturer 
or importer.
    Respondents: Domestic manufacturers who ship 15 million board feet 
or more annually (363) and importers who remit their assessments 
directly to the Board (assume 5 percent of 103 importers, or 5).
    Estimated number of Respondents: 368.
    Estimated number of Responses per Respondent: 4.
    Estimated Total Annual Burden on Respondents: 736 hours.

(7) Organic Exemption Form

    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.5 hours per exemption form.
    Respondents: Organic domestic manufacturers and importers.
    Estimated Number of Respondents: 1.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 0.5 hour.

(8) Refund of Assessments Paid on Organic Softwood Lumber

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hour.
    Respondents: Organic importers.
    Estimated Number of Respondents: 1.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 0.25 hour.

(9) A Requirement to Maintain Records Sufficient To Verify Reports 
Submitted Under the Order

    Estimate of Burden: Public recordkeeping burden for keeping this 
information is estimated to average 0.5 hours per record keeper 
maintaining such records.
    Recordkeepers: Domestic manufacturers (595) and importers (883).
    Estimated number of recordkeepers: 1,478.
    Estimated total recordkeeping hours: 739 hours.
    As noted above, under the program, domestic manufacturers and 
importers will be required to pay assessments and file reports with and 
submit assessments to the Board (importers through Customs). While the 
Order imposes certain recordkeeping requirements on domestic 
manufacturers and importers, information required under the Order can 
be compiled from records currently maintained. Such records shall be 
retained for at least two years beyond the fiscal year of their 
applicability.
    An estimated 1,478 respondents will provide information to the 
Board (595 domestic manufacturers and 883 importers). The estimated 
cost of providing the information to the Board by respondents is 
$24,387. This total has been estimated by multiplying 739 total hours 
required for reporting and recordkeeping by $33, the average mean 
hourly earnings of various occupations involved in keeping this 
information. Data for computation of this hourly rate was obtained from 
the U.S. Department of Labor Statistics.
    The Order's provisions have been carefully reviewed, and every 
effort has

[[Page 46193]]

been made to minimize any unnecessary recordkeeping costs or 
requirements, including efforts to utilize information already 
submitted under other programs administered by USDA and other state 
programs.
    The forms require the minimum information necessary to effectively 
carry out the requirements of the program, and their use is necessary 
to fulfill the intent of the 1996 Act. Such information can be supplied 
without data processing equipment or outside technical expertise. In 
addition, there are no additional training requirements for individuals 
filling out reports and remitting assessments to the Board. The forms 
are simple, easy to understand, and place as small a burden as possible 
on the person required to file the information.
    Collecting information quarterly coincides with normal industry 
business practices. The timing and frequency of collecting information 
are intended to meet the needs of the industry while minimizing the 
amount of work necessary to fill out the required reports. The 
requirement to keep records for two years is consistent with normal 
industry practices. In addition, the information to be included on 
these forms is not available from other sources because such 
information relates specifically to individual domestic manufacturers 
and importers who are subject to the provisions of the 1996 Act. 
Therefore, there is no practical method for collecting the required 
information without the use of these forms.
    In the October 1, 2010, proposed rule, comments were also invited 
on the information collection requirements prescribed in the Paperwork 
Reduction Act section of this rule. Specifically, comments were 
solicited on: (a) Whether the collection of information is necessary 
for the proper performance of functions of the Order and USDA's 
oversight of the Order, including whether the information would have 
practical utility; (b) the accuracy of USDA's estimate of the burden of 
the collection of information, including the validity of the 
methodology and assumptions used; (c) the accuracy of USDA's estimate 
of the principal manufacturing areas in the United States for softwood 
lumber; (d) the accuracy of USDA's estimate of the number of domestic 
manufacturers and importers of softwood lumber that will be covered 
under the program; (e) ways to enhance the quality, utility, and 
clarity of the information to be collected; and (f) ways to minimize 
the burden of the collection of information on those who are to 
respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology. No comments were received regarding 
information collection.
    As previously mentioned, the Department conducted a referendum 
among domestic manufacturers and importers of softwood lumber from May 
23 through June 10, 2011, to determine whether the program would become 
effective. The representative period for establishing voter eligibility 
was January 1 through December 31, 2010. Domestic manufacturers and 
importers currently engaged in the business who manufactured and 
shipped within the United States/or imported to the United States 15 
million board feet or more of softwood lumber during the representative 
period were eligible to vote. Sixty-seven percent of those voting in 
the referendum representing 80 percent of the volume of softwood lumber 
represented in the referendum favored implementation of the program.
    After consideration of all relevant material presented, including 
the initial proposal, comments received, and the referendum results, it 
is found that the Softwood Lumber Research, Promotion, Consumer 
Education and Industry Information Order is consistent with and 
effectuates the purposes of the 1996 Act.
    Pursuant to 5 U.S.C. 553, it is found that good cause exists for 
not postponing the effective date of this rule until 30 days after 
publication in the Federal Register because this rule was approved in a 
referendum of domestic manufacturers and importers and needs to be in 
effect as soon as possible so that USDA can conduct nominations to seat 
the first Board prior to January 1, 2012, the date when the collection 
of assessments begins on the program.

List of Subjects in 7 CFR Part 1217

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Softwood lumber promotion, Reporting 
and recordkeeping requirements.

    For the reasons set forth in the preamble, Title 7, Chapter XI of 
the Code of Federal Regulations is amended by adding part 1217 to read 
as follows:

PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION 
AND INDUSTRY INFORMATION ORDER

Subpart A--Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order

Definitions

Sec.
1217.1 Act.
1217.2 Blue Ribbon Commission or BRC.
1217.3 Board or Softwood Lumber Board.
1217.4 Board foot.
1217.5 Conflict of interest.
1217.6 Customs or CBP.
1217.7 Department or USDA.
1217.8 Domestic manufacturer.
1217.9 Export.
1217.10 Fiscal period or year.
1217.11 Importer.
1217.12 Information.
1217.13 Manufacture.
1217.14 Manufacturer for the U.S. market.
1217.15 Marketing.
1217.16 Nominal size.
1217.17 Order.
1217.18 Part and subpart.
1217.19 Person.
1217.20 Planing.
1217.21 Programs, plans and projects.
1217.22 Promotion.
1217.23 Research.
1217.24 Secretary.
1217.25 Softwood.
1217.26 Softwood lumber.
1217.27 State.
1217.28 Suspend.
1217.29 Terminate.
1217.30 United States.

Softwood Lumber Board

1217.40 Establishment and membership.
1217.41 Nominations and appointments.
1217.42 Term of office.
1217.43 Removal and vacancies.
1217.44 Procedure.
1217.45 Reimbursement and attendance.
1217.46 Powers and duties.
1217.47 Prohibited activities.

Expenses and Assessments

1217.50 Budget and expenses.
1217.51 Financial statements.
1217.52 Assessments.
1217.53 Exemption from assessment.

Promotion,