Revision of Cotton Futures Classification Procedures, 5379-5381 [2012-2382]
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5379
Rules and Regulations
Federal Register
Vol. 77, No. 23
Friday, February 3, 2012
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 27
[Doc. #AMS–CN–10–0073; CN–10–005]
RIN 0581–AD16
Revision of Cotton Futures
Classification Procedures
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
The Agricultural Marketing
Service (AMS) is amending the
procedures for cotton futures quality
classification services by using SmithDoxey classification data in the cotton
futures classification process. In
addition, references to a separate and
optional review of cotton futures
certification are being eliminated to
reflect current industry practices. These
changes in procedures for cotton futures
quality classification services, as well as
proposed conforming changes, reflect
advances in cotton fiber quality
measurement and data processing made
since the regulations were last updated
in 1992.
DATES: Effective Date: March 5, 2012.
FOR FURTHER INFORMATION CONTACT:
Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Programs, AMS,
USDA, 3275 Appling Road, Memphis,
TN 38133. Telephone (901) 384–3060,
facsimile (901) 384–3021, or email
darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
tkelley on DSK3SPTVN1PROD with RULES
SUMMARY:
Executive Order 12866
This final 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).
VerDate Mar<15>2010
16:37 Feb 02, 2012
Jkt 226001
Executive Order 12988
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. There are no
administrative procedures which must
be exhausted prior to any judicial
challenge to the provisions of this final
rule.
Background
AMS Cotton and Tobacco Programs is
revising procedures for providing
services related to the classification of
cotton futures as authorized by Act by
using Smith-Doxey classification data in
the cotton futures classification process.
The Act requires USDA-certified quality
measurements for each bale included in
futures contracts for the purpose of
verifying that each bale meets the
minimum quality requirements for
cotton futures trading.
USDA was first directed to provide
cotton classification services to
producers of cotton under the SmithDoxey Act of April 13, 1937 (Pub. L. 75–
28). Therefore, the original classification
of a cotton bale’s sample and quality
data which results from this
classification is commonly referred to as
the Smith-Doxey classification or SmithDoxey data. While cotton classification
is not mandatory, practically every
cotton bale grown in the United States
today is classed by USDA under the
authority of the Cotton Statistics and
Estimates Act (7 U.S.C. 471–476) and
the U.S. Cotton Standards Act (7 U.S.C.
51–65) and under regulations found in
7 CFR part 28—Cotton Classing, Testing,
and Standards. The U.S. cotton industry
uses Smith-Doxey classification data to
assign quality-adjusted market values to
U.S. cotton and market U.S. cotton both
domestically and internationally.
Although the Smith-Doxey classification
and the futures classification are
independent measures of cotton quality
that serve different purposes, the SmithDoxey data is used by the cotton
merchant community to indicate which
bales may be tenderable against a cotton
futures contract.
USDA’s cotton classification
capabilities have dramatically improved
as a result of the extensive technological
progress, increasing data accuracy and
operational efficiency. In addition to the
increased accuracy and reliability of
Smith-Doxey data, improvements in
data management and the desire to
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
increase operational efficiencies have
prompted the Cotton and Tobacco
Programs to propose the use of SmithDoxey classification data in the cotton
futures classification process.
Currently, the futures classification
process is a two-step process that occurs
after the Smith-Doxey classification in
which an initial futures classification is
immediately verified by a review—
commonly referred to as a final futures
classification. When verified by a
futures classification, Smith-Doxey
classification data will serve as the
initial futures classification with the
verifying futures classification serving
as the final futures classification,
reducing the number of futures
classifications required in many
instances. Verification of Smith-Doxey
classing data is necessary because
certain quality characteristics—
especially color—are known to change
over time and when cotton is subjected
to certain environmental conditions.
In cases where the comparison of
Smith-Doxey data and futures
classification data fail to pass preestablished tolerances, a second futures
classification will be required. The use
of Smith-Doxey classification data will
significantly reduce the need for yet
another cotton futures classification.
The proposed changes would improve
operational efficiency while potentially
improving the integrity and accuracy of
classification data provided to the
cotton industry.
For the reasons set forth above, this
rule amends 7 CFR part 27—Cotton
Classification Under Cotton Futures
Legislation, which establishes the
procedures for determining cotton
classification for cotton submitted for
futures certification. Specific changes
required to implement the revised
futures classification procedure include
the elimination of outdated procedures
in sections 27.61–27.67, 27.69 and 27.72
used to guide optional reviews of
futures classifications and the
elimination of references to fees charged
for ‘‘initial classification and
certification’’, ‘‘review classification and
certification’’ and ‘‘combination
services’’ in section 27.80. Conforming
changes remove references to eliminated
sections 27.9, 27.14, 27.21., 27.36 and
27.47 and apply current organizational
terminology in paragraph (h) of section
27.2 and section 27.39.
E:\FR\FM\03FER1.SGM
03FER1
5380
Federal Register / Vol. 77, No. 23 / Friday, February 3, 2012 / Rules and Regulations
As stated above, the cotton futures
classification includes a process by
which an initial futures classification is
followed up by a futures final
classification. While not mandatory, this
two-stage process has been deemed
appropriate by the industry. Therefore,
sections 27.61–27.67, 27.69 and 27.72,
which address optional reviews of
futures classifications, are irrelevant.
Furthermore, reference to ‘‘initial
classification and certification’’ fees in
paragraph (a) of section 27.80 are
removed to avoid confusion with SmithDoxey classifications and to reflect that
initial classification fees are already
specified in paragraph (b) of 7 CFR
28.909. Likewise, reference to ‘‘review
classification and certification’’ fees in
paragraph (b) of section 27.80 are
removed since fees for review
classifications are already specified in 7
CFR 28.911.
The term ‘‘combination services’’ in
paragraph (d) of section 27.80 reflects
the current practice of performing an
‘‘initial’’ futures classification and an
immediate ‘‘review’’ futures
classification. Since Smith-Doxey
classification data serves as the initial
futures classification when verified by a
‘‘review’’ futures classification, these
services are simply defined as ‘‘futures
classification services.’’
tkelley on DSK3SPTVN1PROD with RULES
Summary of Comments
A proposed rule was published on
September 29, 2011, with a comment
period of September 29, 2011 through
October 31, 2011. (76 FR 60388). No
comments were received by AMS from
individuals or various organizations
representing segments of the cotton
industry.
Regulatory Flexibility Act and
Paperwork Reduction Act
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), AMS has considered
the economic impact of this action on
small entities and has determined that
its implementation will not have a
significant economic impact on a
substantial number of small entities.
Fees paid by users of the service are not
changed by this action; implementation
of the new procedures indicates the
existing fees remain sufficient to fully
reimburse AMS for provision of the
services.
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. There are
approximately sixty cotton merchant
organizations of various sizes active in
trading U.S. cotton. Cotton merchants
VerDate Mar<15>2010
16:37 Feb 02, 2012
Jkt 226001
voluntarily use the AMS cotton futures
classification services annually under
the Cotton Futures Act (Act) (7 U.S.C.
15b). Many of these cotton merchants
are small businesses under the criteria
established by the Small Business
Administration (13 CFR 121.201).
Revisions being proposed reflect the
progress made in quality determination
and data dissemination. The proposed
process changes in the classification of
cotton futures will yield increases of
efficiency to the benefit of the cotton
marketing industry.
There are no Federal rules that
duplicate, overlap, or conflict with this
rule.
In compliance with Office of
Management and Budget (OMB)
regulations (5 CFR part 1320), which
implement the Paperwork Reduction
Act (PRA) (44 U.S.C. 3501–3520), the
information collection requirements
contained in the regulation to be
amended have been previously
approved by OMB and were assigned
control number 0581–0008, Cotton
Classing, Testing and Standards.
List of Subjects in 7 CFR Part 27
Commodity futures, Cotton.
For the reasons set forth in the
preamble 7 CFR part 27 is amended as
follows:
PART 27—[AMENDED]
1. The authority citation for 7 CFR
part 27 continues to read as follows:
■
Authority: 7 U.S.C. 15b, 7 U.S.C. 4736, 7
U.S.C. 1622(g).
2. Section 27.2 paragraph (h) is
revised to read as follows:
■
§ 27.2
Terms defined.
*
*
*
*
*
(h) Quality Assurance Division. The
Quality Assurance Division at Memphis,
Tennessee; shall provide supervision of
futures cotton classification.
*
*
*
*
*
3. Section 27.9 is revised to read as
follows:
■
§ 27.9 Classing Offices; Quality Assurance
Division.
Classing Offices shall be maintained
at points designated for the purpose by
the Administrator. The Quality
Assurance Division shall provide
supervision of futures cotton
classification and perform other duties
as assigned by the Deputy
Administrator.
4. Section 27.14 is revised to read as
follows:
■
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Frm 00002
Fmt 4700
Sfmt 4700
§ 27.14
Filing of classification requests.
Requests for futures classification
shall be filed with the Quality
Assurance Division within 10 days after
sampling and before classification of the
samples.
§ 27.21
[Removed and Reserved]
5. Section 27.21 is removed and
reserved.
■
6. Section 27.36 is revised to read as
follows:
■
§ 27.36 Classification determinations
based on official standards.
All cotton shall be classified on the
basis of the official cotton standards of
the United States in effect at the time of
such classification.
7. Section 27.39 is revised to read as
follows:
■
§ 27.39
Issuance of classification records.
Except as otherwise provided in this
section, as soon as practicable after the
classification of cotton has been
completed by the Cotton and Tobacco
Programs, the Quality Assurance
Division shall issue an electronic cotton
classification record showing the results
of such classification. Each electronic
record shall bear the date of its issuance.
The electronic record shall show the
identification of the cotton according to
the information in the possession of the
Cotton and Tobacco Programs, the
classification of the cotton and such
other facts as the Deputy Administrator
may require.
8. Section 27.47 is revised to read as
follows:
■
§ 27.47 Tender or delivery of cotton;
conditions.
Subject to the provisions of §§ 27.52
through 27.55, no cotton shall be
tendered or delivered on a basis grade
contract unless on or prior to the date
fixed for delivery under such contract,
and in advance of final settlement of the
contract, the person making the tender
shall furnish to the person receiving the
same a valid outstanding cotton
classification record complying with the
regulations in this subpart, showing
such cotton to be tenderable on a basis
grade contract.
§ 27.61
[Removed and Reserved]
9. The undesignated center heading
preceding § 27.61 is removed and
§ 27.61 is removed and reserved.
■
§§ 27.62–27.67
[Removed and Reserved]
10. Sections 27.62–27.67 are removed
and reserved.
■
E:\FR\FM\03FER1.SGM
03FER1
Federal Register / Vol. 77, No. 23 / Friday, February 3, 2012 / Rules and Regulations
§ 27.69
[Removed and Reserved]
11. Section 27.69 is removed and
reserved.
■
§ 27.72
[Removed and Reserved]
12. Section 27.72 is removed and
reserved.
■ 13. Section 27.80 is revised to read as
follows:
■
§ 27.80 Fees; review classification, futures
classification and supervision.
For services rendered by the Cotton
and Tobacco Programs pursuant to this
subpart, whether the cotton involved is
tenderable or not, the person requesting
the services shall pay fees as follows:
(a) [Reserved]
(b) [Reserved]
(c) [Reserved]
(d) Futures classification—$3.50 per
bale.
Dated: January 30, 2012.
David R. Shipman,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2012–2382 Filed 2–2–12; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
7 CFR Part 301
Background
[Docket No. APHIS–2011–0004]
RIN 0579–AD58
Plum Pox Compensation
Animal and Plant Health
Inspection Service, USDA.
ACTION: Interim rule and request for
comments.
AGENCY:
We are amending the plum
pox regulations to provide for the
payment of compensation to eligible
owners of non-fruit-bearing ornamental
tree nurseries and to increase the
amount of compensation that may be
paid to eligible owners of commercial
stone fruit orchards and fruit tree
nurseries whose trees are required to be
destroyed in order to prevent the spread
of plum pox. We are also providing
updated instructions for the submission
of claims for compensation. These
changes are necessary to provide
adequate compensation to persons who
are economically affected by the plum
pox quarantine and the associated State
and Federal eradication efforts. This
action will assist our efforts to eradicate
plum pox in the United States.
DATES: This interim rule is effective
upon February 3, 2012. We will
tkelley on DSK3SPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
16:37 Feb 02, 2012
consider all comments that we receive
on or before April 3, 2012.
ADDRESSES: You may submit comments
by either of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov/
#!documentDetail;D=APHIS-2011-00040001.
• Postal Mail/Commercial Delivery:
Send your comment to Docket No.
APHIS–2011–0004, Regulatory Analysis
and Development, PPD, APHIS, Station
3A–03.8, 4700 River Road Unit 118,
Riverdale, MD 20737–1238.
Supporting documents and any
comments we receive on this docket
may be viewed at https://
www.regulations.gov/
#!docketDetail;D=APHIS-2011-0004 or
in our reading room, which is located in
room 1141 of the USDA South Building,
14th Street and Independence Avenue
SW., Washington, DC. Normal reading
room hours are 8 a.m. to 4:30 p.m.,
Monday through Friday, except
holidays. To be sure someone is there to
help you, please call (202) 690–2817
before coming.
FOR FURTHER INFORMATION CONTACT: Dr.
S. Anwar Rizvi, Plum Pox National
Program Manager, PPQ, APHIS, 4700
River Road Unit 26, Riverdale, MD
20737–1231; (301) 734–4313.
SUPPLEMENTARY INFORMATION:
Jkt 226001
Plum pox is an extremely serious viral
disease of plants that can affect many
Prunus (stone fruit) species, including
plum, peach, apricot, almond, nectarine,
and sweet and tart cherry. A number of
wild and ornamental Prunus species
may also be susceptible to this disease.
Infection eventually results in severely
reduced fruit production, and the fruit
that is produced is often misshapen and
blemished. In Europe, plum pox has
been present for a number of years and
is considered to be the most serious
disease affecting susceptible Prunus
varieties. Plum pox is transmitted
locally by various aphid species, as well
as by budding and grafting with infected
plant material, and spreads over longer
distances through movement of infected
budwood, nursery stock, and other plant
parts.
There are no known effective methods
for treating trees or other plant material
infected with plum pox, nor are there
any known effective prophylactic
treatments to prevent the disease from
occurring in trees that are exposed to
the disease due to their proximity to
infected trees. Without effective
treatments, the only option for
preventing the spread of the disease is
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
5381
the destruction of infected and exposed
trees.
The first documented case of plum
pox in the United States was detected in
an Adams County, PA, orchard in 1999.
In 2006, additional detections were
made in New York and Michigan.
Through cooperative Federal/State
efforts, plum pox has been eradicated in
Pennsylvania and Michigan. Currently,
portions of Niagara, Orleans, and Wayne
Counties, NY, are the only areas in the
United States quarantined because of
plum pox.
The regulations in Subpart—Plum
Pox (7 CFR 301.74 through 301.74–5),
referred to below as the regulations,
quarantine areas of the United States
where plum pox has been detected and
restrict the interstate movement of
regulated articles (e.g., trees, seedlings,
root stock, budwood, branches, twigs,
and leaves of susceptible Prunus spp.)
from quarantined areas to prevent the
spread of plum pox virus (PPV) into
uninfected areas of the United States.
In addition to the quarantine and
interstate movement restrictions in the
regulations, § 310.74–5 also provides for
the payment of compensation to eligible
owners of commercial stone fruit
orchards, including direct marketers,
and fruit tree nurseries. Compensation
payments are provided to eligible
orchard owners to mitigate losses
associated with the destruction of trees
in order to control plum pox pursuant
to an emergency action notification
(EAN) issued by the U.S. Department of
Agriculture’s (USDA) Animal and Plant
Health Inspection Service (APHIS).
Payments are also provided to eligible
nursery owners to mitigate the net
revenue losses associated with the
prohibition on the movement or sale of
nursery stock as a result of the issuance
of an EAN by APHIS with respect to
regulated articles within the nursery in
order to control plum pox.
The compensation provisions of
§ 301.74–5 were established to reduce
the economic effect of the plum pox
quarantine on affected commercial
growers and nursery owners, thus
ensuring their continued cooperation
with the survey and eradication
activities being conducted by APHIS
and State plant health agencies. The
availability of compensation played an
important role in the successful
eradication of plum pox from Adams
County, PA. Affected owners of
commercial stone fruit orchards and
fruit tree nurseries in the quarantined
areas of New York are eligible for, and
have received, compensation payments
in connection with the destruction of
trees and the resulting loss in income
E:\FR\FM\03FER1.SGM
03FER1
]]>Agencies
[Federal Register Volume 77, Number 23 (Friday, February 3, 2012)]
[Rules and Regulations]
[Pages 5379-5381]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2382]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 77, No. 23 / Friday, February 3, 2012 / Rules
and Regulations
[[Page 5379]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 27
[Doc. AMS-CN-10-0073; CN-10-005]
RIN 0581-AD16
Revision of Cotton Futures Classification Procedures
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Marketing Service (AMS) is amending the
procedures for cotton futures quality classification services by using
Smith-Doxey classification data in the cotton futures classification
process. In addition, references to a separate and optional review of
cotton futures certification are being eliminated to reflect current
industry practices. These changes in procedures for cotton futures
quality classification services, as well as proposed conforming
changes, reflect advances in cotton fiber quality measurement and data
processing made since the regulations were last updated in 1992.
DATES: Effective Date: March 5, 2012.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Programs, AMS, USDA, 3275 Appling Road, Memphis, TN
38133. Telephone (901) 384-3060, facsimile (901) 384-3021, or email
darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final 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 final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
There are no administrative procedures which must be exhausted prior to
any judicial challenge to the provisions of this final rule.
Background
AMS Cotton and Tobacco Programs is revising procedures for
providing services related to the classification of cotton futures as
authorized by Act by using Smith-Doxey classification data in the
cotton futures classification process. The Act requires USDA-certified
quality measurements for each bale included in futures contracts for
the purpose of verifying that each bale meets the minimum quality
requirements for cotton futures trading.
USDA was first directed to provide cotton classification services
to producers of cotton under the Smith-Doxey Act of April 13, 1937
(Pub. L. 75-28). Therefore, the original classification of a cotton
bale's sample and quality data which results from this classification
is commonly referred to as the Smith-Doxey classification or Smith-
Doxey data. While cotton classification is not mandatory, practically
every cotton bale grown in the United States today is classed by USDA
under the authority of the Cotton Statistics and Estimates Act (7
U.S.C. 471-476) and the U.S. Cotton Standards Act (7 U.S.C. 51-65) and
under regulations found in 7 CFR part 28--Cotton Classing, Testing, and
Standards. The U.S. cotton industry uses Smith-Doxey classification
data to assign quality-adjusted market values to U.S. cotton and market
U.S. cotton both domestically and internationally. Although the Smith-
Doxey classification and the futures classification are independent
measures of cotton quality that serve different purposes, the Smith-
Doxey data is used by the cotton merchant community to indicate which
bales may be tenderable against a cotton futures contract.
USDA's cotton classification capabilities have dramatically
improved as a result of the extensive technological progress,
increasing data accuracy and operational efficiency. In addition to the
increased accuracy and reliability of Smith-Doxey data, improvements in
data management and the desire to increase operational efficiencies
have prompted the Cotton and Tobacco Programs to propose the use of
Smith-Doxey classification data in the cotton futures classification
process.
Currently, the futures classification process is a two-step process
that occurs after the Smith-Doxey classification in which an initial
futures classification is immediately verified by a review--commonly
referred to as a final futures classification. When verified by a
futures classification, Smith-Doxey classification data will serve as
the initial futures classification with the verifying futures
classification serving as the final futures classification, reducing
the number of futures classifications required in many instances.
Verification of Smith-Doxey classing data is necessary because certain
quality characteristics--especially color--are known to change over
time and when cotton is subjected to certain environmental conditions.
In cases where the comparison of Smith-Doxey data and futures
classification data fail to pass pre-established tolerances, a second
futures classification will be required. The use of Smith-Doxey
classification data will significantly reduce the need for yet another
cotton futures classification. The proposed changes would improve
operational efficiency while potentially improving the integrity and
accuracy of classification data provided to the cotton industry.
For the reasons set forth above, this rule amends 7 CFR part 27--
Cotton Classification Under Cotton Futures Legislation, which
establishes the procedures for determining cotton classification for
cotton submitted for futures certification. Specific changes required
to implement the revised futures classification procedure include the
elimination of outdated procedures in sections 27.61-27.67, 27.69 and
27.72 used to guide optional reviews of futures classifications and the
elimination of references to fees charged for ``initial classification
and certification'', ``review classification and certification'' and
``combination services'' in section 27.80. Conforming changes remove
references to eliminated sections 27.9, 27.14, 27.21., 27.36 and 27.47
and apply current organizational terminology in paragraph (h) of
section 27.2 and section 27.39.
[[Page 5380]]
As stated above, the cotton futures classification includes a
process by which an initial futures classification is followed up by a
futures final classification. While not mandatory, this two-stage
process has been deemed appropriate by the industry. Therefore,
sections 27.61-27.67, 27.69 and 27.72, which address optional reviews
of futures classifications, are irrelevant. Furthermore, reference to
``initial classification and certification'' fees in paragraph (a) of
section 27.80 are removed to avoid confusion with Smith-Doxey
classifications and to reflect that initial classification fees are
already specified in paragraph (b) of 7 CFR 28.909. Likewise, reference
to ``review classification and certification'' fees in paragraph (b) of
section 27.80 are removed since fees for review classifications are
already specified in 7 CFR 28.911.
The term ``combination services'' in paragraph (d) of section 27.80
reflects the current practice of performing an ``initial'' futures
classification and an immediate ``review'' futures classification.
Since Smith-Doxey classification data serves as the initial futures
classification when verified by a ``review'' futures classification,
these services are simply defined as ``futures classification
services.''
Summary of Comments
A proposed rule was published on September 29, 2011, with a comment
period of September 29, 2011 through October 31, 2011. (76 FR 60388).
No comments were received by AMS from individuals or various
organizations representing segments of the cotton industry.
Regulatory Flexibility Act and Paperwork Reduction Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this action on small entities and has determined that its
implementation will not have a significant economic impact on a
substantial number of small entities. Fees paid by users of the service
are not changed by this action; implementation of the new procedures
indicates the existing fees remain sufficient to fully reimburse AMS
for provision of the services.
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. There are approximately sixty cotton
merchant organizations of various sizes active in trading U.S. cotton.
Cotton merchants voluntarily use the AMS cotton futures classification
services annually under the Cotton Futures Act (Act) (7 U.S.C. 15b).
Many of these cotton merchants are small businesses under the criteria
established by the Small Business Administration (13 CFR 121.201).
Revisions being proposed reflect the progress made in quality
determination and data dissemination. The proposed process changes in
the classification of cotton futures will yield increases of efficiency
to the benefit of the cotton marketing industry.
There are no Federal rules that duplicate, overlap, or conflict
with this rule.
In compliance with Office of Management and Budget (OMB)
regulations (5 CFR part 1320), which implement the Paperwork Reduction
Act (PRA) (44 U.S.C. 3501-3520), the information collection
requirements contained in the regulation to be amended have been
previously approved by OMB and were assigned control number 0581-0008,
Cotton Classing, Testing and Standards.
List of Subjects in 7 CFR Part 27
Commodity futures, Cotton.
For the reasons set forth in the preamble 7 CFR part 27 is amended
as follows:
PART 27--[AMENDED]
0
1. The authority citation for 7 CFR part 27 continues to read as
follows:
Authority: 7 U.S.C. 15b, 7 U.S.C. 4736, 7 U.S.C. 1622(g).
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2. Section 27.2 paragraph (h) is revised to read as follows:
Sec. 27.2 Terms defined.
* * * * *
(h) Quality Assurance Division. The Quality Assurance Division at
Memphis, Tennessee; shall provide supervision of futures cotton
classification.
* * * * *
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3. Section 27.9 is revised to read as follows:
Sec. 27.9 Classing Offices; Quality Assurance Division.
Classing Offices shall be maintained at points designated for the
purpose by the Administrator. The Quality Assurance Division shall
provide supervision of futures cotton classification and perform other
duties as assigned by the Deputy Administrator.
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4. Section 27.14 is revised to read as follows:
Sec. 27.14 Filing of classification requests.
Requests for futures classification shall be filed with the Quality
Assurance Division within 10 days after sampling and before
classification of the samples.
Sec. 27.21 [Removed and Reserved]
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5. Section 27.21 is removed and reserved.
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6. Section 27.36 is revised to read as follows:
Sec. 27.36 Classification determinations based on official standards.
All cotton shall be classified on the basis of the official cotton
standards of the United States in effect at the time of such
classification.
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7. Section 27.39 is revised to read as follows:
Sec. 27.39 Issuance of classification records.
Except as otherwise provided in this section, as soon as
practicable after the classification of cotton has been completed by
the Cotton and Tobacco Programs, the Quality Assurance Division shall
issue an electronic cotton classification record showing the results of
such classification. Each electronic record shall bear the date of its
issuance. The electronic record shall show the identification of the
cotton according to the information in the possession of the Cotton and
Tobacco Programs, the classification of the cotton and such other facts
as the Deputy Administrator may require.
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8. Section 27.47 is revised to read as follows:
Sec. 27.47 Tender or delivery of cotton; conditions.
Subject to the provisions of Sec. Sec. 27.52 through 27.55, no
cotton shall be tendered or delivered on a basis grade contract unless
on or prior to the date fixed for delivery under such contract, and in
advance of final settlement of the contract, the person making the
tender shall furnish to the person receiving the same a valid
outstanding cotton classification record complying with the regulations
in this subpart, showing such cotton to be tenderable on a basis grade
contract.
Sec. 27.61 [Removed and Reserved]
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9. The undesignated center heading preceding Sec. 27.61 is removed and
Sec. 27.61 is removed and reserved.
Sec. Sec. 27.62-27.67 [Removed and Reserved]
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10. Sections 27.62-27.67 are removed and reserved.
[[Page 5381]]
Sec. 27.69 [Removed and Reserved]
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11. Section 27.69 is removed and reserved.
Sec. 27.72 [Removed and Reserved]
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12. Section 27.72 is removed and reserved.
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13. Section 27.80 is revised to read as follows:
Sec. 27.80 Fees; review classification, futures classification and
supervision.
For services rendered by the Cotton and Tobacco Programs pursuant
to this subpart, whether the cotton involved is tenderable or not, the
person requesting the services shall pay fees as follows:
(a) [Reserved]
(b) [Reserved]
(c) [Reserved]
(d) Futures classification--$3.50 per bale.
Dated: January 30, 2012.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2012-2382 Filed 2-2-12; 8:45 am]
BILLING CODE 3410-02-P
