Cotton Futures Classification: Optional Classification Procedure, 68983-68985 [2013-27533]
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Federal Register / Vol. 78, No. 222 / Monday, November 18, 2013 / Rules and Regulations
provide the same safeguards as are
provided by physical presence.
*
*
*
*
*
■ 6. Revise § 850.201 to read as follows:
processing by the retirement and
insurance processing system.
■ 10. Revise § 850.401 to read as
follows:
§ 850.201
§ 850.401 Electronic notice of coverage
determination.
Applications for benefits.
(a) Hardcopy applications and related
submissions that are otherwise required
to be made to an individual’s employing
agency (other than by statute) may
instead be submitted electronically in
such form as the Director prescribes
under § 850.104.
(b) Data provided under subpart C of
this part are the basis for adjudicating
claims for CSRS and FERS retirement
benefits, and will support the
administration of FEGLI, FEHB and
RFEHB coverage for annuitants, under
this part.
§ 850.202
[Amended]
7. Amend § 850.202 by removing the
paragraph parenthetical designation
‘‘(a)’’ and by removing paragraph (b).
■ 8. Revise § 850.203 to read as follows:
■
§ 850.203
[FR Doc. 2013–27534 Filed 11–15–13; 8:45 am]
BILLING CODE 6325–38–P
Other elections.
Any other election may be effected in
such form as the Director prescribes
under § 850.104. Such elections include
but are not limited to elections of
coverage under CSRS, FERS, FEGLI,
FEHB, or RFEHB by individuals entitled
to elect such coverage; applications for
service credit and applications to make
deposit; and elections regarding the
withholding of State income tax from
annuity payments.
■ 9. Revise § 850.301 to read as follows:
§ 850.301 Electronic records; other
acceptable records.
mstockstill on DSK4VPTVN1PROD with RULES
An agency or other entity that submits
electronic employee records directly or
through a Shared Service Center must
include in the notice of law enforcement
officer, firefighter, or nuclear materials
retirement coverage, required by
§§ 831.811(a), 831.911(a), 842.808(a), or
842.910(a) of this chapter, the position
description number, or other unique
alphanumeric identifier, in the notice
for the position for which law
enforcement officer, firefighter, or
nuclear materials courier retirement
coverage has been approved. Agencies
or other entities must submit position
descriptions to OPM in a PDF document
to combox address: combox@opm.gov.
(a) Acceptable electronic records for
retirement and insurance processing by
OPM include—
(1) Electronic employee data,
including an eIRR or an ERR, submitted
by an agency, agency payroll office, or
Shared Service Center, or other entity
and stored within the EHRI Retirement
Data Repository, the eIRR records
storage database, or other OPM
database.
(2) Electronic Official Personnel
Folder (eOPF) data; and
(3) Documents, including hardcopy
versions of the Individual Retirement
Record (SF 2806 or SF 3100), or data or
images obtained from such documents,
including images stored in EDMS, that
are converted to an electronic or digital
form by means of image scanning or
other forms of electronic or digital
conversion.
(b) Documents that are not converted
to an electronic or digital form will
continue to be acceptable records for
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17:13 Nov 15, 2013
Jkt 232001
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 27
[AMS–CN–13–0043]
RIN 0581–AD33
Cotton Futures Classification: Optional
Classification Procedure
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
The Agricultural Marketing
Service (AMS) is amending regulations
to allow for the addition of an optional
cotton futures classification procedure—
identified and known as ‘‘registration’’
by the U.S. cotton industry and the
Intercontinental Exchange (ICE). In
response to requests from the U.S.
cotton industry and ICE, AMS will offer
a futures classification option whereby
cotton bales may be certificated for the
purpose of an exchange’s cotton futures
contract using Smith-Doxey data to
verify that submitted bales meet more
restrictive quality requirements and age
parameters established by that
exchange. AMS anticipates that the
futures classification option will be
available in time for the implementation
of ICE’s Cotton Resolution No. 2, which
is scheduled to commence with the
March 2014 contract month.
DATES: Effective Date: November 19,
2013.
SUMMARY:
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
68983
FOR FURTHER INFORMATION CONTACT:
Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Program, AMS,
USDA, 3275 Appling Road, Room 11,
Memphis, TN 38133. Telephone (901)
384–3060, facsimile (901) 384–3021, or
email darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
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. There are no
administrative procedures that must be
exhausted prior to any judicial
challenge to the provisions of this rule.
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 businesses.
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 60 cotton merchant
organizations of various sizes active in
trading U.S. cotton. Cotton merchants
voluntarily use the AMS cotton futures
classification services 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). Establishing the
registration option for cotton futures
classification will not significantly
affect small businesses as defined in the
RFA because:
(1) The established user fee for cotton
futures classification services is $3.50
per bale (7 CFR § 27.80). Users choosing
the registration option would incur no
additional charges;
(2) The established cotton futures
classification fee represents a very small
portion of the cost per-unit currently
borne by those entities utilizing the
service;
(3) The average price paid to
producers for cotton from the 2012 crop
was 73.22 cents per pound, making a
500 pound bale of cotton worth an
average of $366.10. The current user fee
E:\FR\FM\18NOR1.SGM
18NOR1
68984
Federal Register / Vol. 78, No. 222 / Monday, November 18, 2013 / Rules and Regulations
mstockstill on DSK4VPTVN1PROD with RULES
for futures classification services, $3.50
per bale, is less than one percent of the
average value of a bale of cotton;
(4) The fee for this service will not
affect competition in the marketplace;
(5) The futures classification option is
expected to streamline marketing and
create logistical efficiencies for all
entities utilizing this option; and
(6) The use of futures classification
services is voluntary. For fiscal year
2013, there were 913,179 cotton futures
samples (approximately 5.4 percent of
the 16,942,409 Smith-Doxey
classifications) voluntarily submitted for
the futures classification service.
In compliance with OMB regulations
(5 CFR part 1320), which implement the
Paperwork Reduction Act (PRA) (44
U.S.C. 3501), the information collection
requirements associated with this rule
have been previously approved by OMB
and were assigned OMB control number
0581–0008, Cotton Classing, Testing,
And Standards.
Background
The Act requires USDA-verified
quality measurements for each bale to
be included in futures contracts for the
purpose of verifying that each bale
meets the minimum quality
requirements for cotton futures trading.
Furthermore, the Act authorizes the
charging of user fees required to recover
the cost associated with providing
futures quality verification services.
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 AMS 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 data to assign qualityadjusted market values to U.S. cotton
and market U.S. cotton both
domestically and internationally. SmithDoxey data is commonly used by the
cotton merchant community to indicate
which bales may be tenderable against
a cotton futures contract.
Conventional procedures employed
for verifying quality measurements for
bales to be included in futures contracts
consists of two futures classifications: 1)
initial futures classification and 2) final
VerDate Mar<15>2010
17:13 Nov 15, 2013
Jkt 232001
futures classification. AMS, Cotton and
Tobacco Program revised these
procedures to incorporate Smith-Doxey
data into the cotton futures
classification process in March 2012 (77
FR 5379). When verified by a futures
classification, Smith-Doxey data serves
as an initial futures classification with
the verifying futures classification
serving as a final futures classification.
The use of Smith-Doxey data
significantly reduced the number of
futures classifications required for many
of the bales that were submitted for
certification.
The successful incorporation of
Smith-Doxey data into the futures
classification procedures prompted the
U.S. cotton industry and ICE to request
that the AMS, Cotton and Tobacco
Program use Smith-Doxey data to certify
that bales submitted for quality
verification meet more restrictive
quality requirements and age parameters
set by ICE for use in a cotton futures
contract. The U.S. cotton industry and
ICE refer to this optional procedure as
the ‘‘registration option’’.
The established user fee for cotton
futures classification services is $3.50
per bale (7 CFR 27.80). Customers
choosing this cotton futures
classification option will incur this
charge. In the event that AMS
determines that a bale submitted under
this option fails to meet quality or age
parameters set by the exchange
inspection agency, the owner of the bale
will be notified of the bale’s failure.
AMS, Cotton and Tobacco Program is
amending regulations in 7 CFR part 27
to allow for the use of original SmithDoxey data to certify that bales
submitted for quality verification meet
quality and age parameters set by the
applicable exchange inspection agency.
Accordingly, the definition of
‘‘Classification’’ in § 27.2, paragraph (n)
is amended to allow the registration
option for the futures classification
services. Also in § 27.2, the term
‘‘Smith-Doxey data’’ is defined in new
paragraphs (p).
Summary of Comments
A proposed rule was published in the
Federal Register on September 9, 2013,
with a comment period of September 9,
2013 through October 9, 2013 (78 FR
54970). AMS received two comments:
one from a national trade organization
representing cotton merchant firms that
handle over 80 percent of the U.S.
cotton sold in domestic and foreign
markets; and one from an American
commodities exchange that operates
regulated exchanges and clearing houses
for energy, agricultural, credit, currency,
emissions, and equity index products.
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
Both comments expressed support for
all provisions outlined in the proposed
rule and the future classification
services provided by the AMS Cotton
and Tobacco Program. Comments may
be viewed at www.regulations.gov.
The U.S. cotton industry and ICE
requested that AMS, Cotton and
Tobacco Program make this option
available in December 2013 to coincide
with the implementation of ICE’s Cotton
Resolution No. 2, which is scheduled to
commence with the March 2014
contract month. Accordingly, pursuant
to 5 U.S.C. 553, it is found and
determined that good cause exists for
not postponing the effective date of this
rule until 30 days after publication in
the Federal Register.
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 to
read as follows:
PART 27—[AMENDED]
1. The authority citation for 7 CFR
part 27 is revised to read as follows:
■
Authority: 7 U.S.C. 15b, 7 U.S.C. 473b, 7
U.S.C. 1622(g).
2. In § 27.2, paragraph (n) is revised
and new paragraph (p) is added to read
as follows:
■
§ 27.2
Terms defined.
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*
*
*
*
(n) Classification. The classification of
any cotton shall be determined by the
quality of a sample in accordance with
the Universal Cotton Standards (the
official cotton standards of the United
States) for cotton property
measurements of American Upland
cotton. High Volume Instruments will
determine all cotton property
measurements except extraneous matter.
Cotton classers authorized by the Cotton
and Tobacco Program will determine
the presence of extraneous matter.
Original Smith-Doxey data may serve as
certification that bales submitted for
quality verification meet quality and age
parameters set by an applicable
exchange inspection agency as a futures
classification option.
*
*
*
*
*
(p) Smith-Doxey data. Data reflecting
the original classification of a cotton
bale provided to producers of cotton
under the Smith-Doxey Act of April 13,
1937 (Pub. L. 75–28).
E:\FR\FM\18NOR1.SGM
18NOR1
Federal Register / Vol. 78, No. 222 / Monday, November 18, 2013 / Rules and Regulations
Dated: November 5, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2013–27533 Filed 11–15–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 25
[Docket No. FAA–2013–0958; Special
Conditions No. 25–503–SC]
Special Conditions: Boeing Model 777–
200, –300, and –300ER Series
Airplanes; Aircraft Electronic System
Security Protection From Unauthorized
Internal Access
Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions.
AGENCY:
These special conditions are
issued for the Boeing Model 777–200,
–300, and –300ER series airplanes.
These airplanes, as modified by the
Boeing Company, will have novel or
unusual design features associated with
the architecture and connectivity of the
passenger service computer network
systems to the airplane critical systems
and data networks. This onboard
network system will be composed of a
network file server, a network extension
device, and additional interfaces
configured by customer option. The
applicable airworthiness regulations do
not contain adequate or appropriate
safety standards for this design feature.
These special conditions contain the
additional safety standards that the
Administrator considers necessary to
establish a level of safety equivalent to
that established by the existing
airworthiness standards.
DATES: Effective Date: The effective date
of these special conditions is November
18, 2013.
FOR FURTHER INFORMATION CONTACT:
Varun Khanna, FAA, Airplane and
Flight Crew Interface Branch, ANM–
111, Transport Airplane Directorate,
Aircraft Certification Service, 1601 Lind
Avenue SW., Renton, Washington
98057–3356; telephone 425–227–1298;
facsimile 425–227–1149.
SUPPLEMENTARY INFORMATION:
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
Background
On August 21, 2012, The Boeing
Company applied for a change to Type
Certificate No. T00001SE Rev. 30 dated
June 6, 2012 for installation of an
onboard network system, associated line
VerDate Mar<15>2010
17:13 Nov 15, 2013
Jkt 232001
replaceable units (LRUs) and additional
software functionality in the Boeing
Model 777–200, –300, and –300ER
Series Airplanes. The Boeing Model
777–200 airplanes are long-range, widebody, twin-engine jet airplanes with a
maximum capacity of 440 passengers.
The Boeing Model 777–300 and 777–
300ER series airplanes have a maximum
capacity of 550 passengers. The Model
777–200, –300, and –300ER series
airplanes have fly-by-wire controls,
software-configurable avionics, and
fiber-optic avionics networks.
The proposed architecture is novel or
unusual for commercial transport
airplanes by enabling connection to
previously isolated data networks
connected to systems that perform
functions required for the safe operation
of the airplane. This proposed data
network and design integration may
result in security vulnerabilities from
intentional or unintentional corruption
of data and systems critical to the safety
and maintenance of the airplane. The
existing regulations and guidance
material did not anticipate this type of
system architecture or electronic access
to aircraft systems. Furthermore,
regulations and current system safety
assessment policy and techniques do
not address potential security
vulnerabilities, which could be caused
by unauthorized access to aircraft data
buses and servers.
Type Certification Basis
Under Title 14, Code of Federal
Regulations (14 CFR) 21.17, The Boeing
Company must show that the Model
777–200, –300, and –300ER series
airplanes meet the applicable provisions
of 14 CFR part 25, as amended by
Amendments 25–1 through 25–128.
If the Administrator finds that the
applicable airworthiness regulations
(i.e., 14 CFR part 25) do not contain
adequate or appropriate safety standards
for the Boeing Model 777–200, –300,
and –300ER series airplanes because of
a novel or unusual design feature,
special conditions are prescribed under
§ 21.16.
Special conditions are initially
applicable to the model for which they
are issued. Should the type certificate
for that model be amended later to
include any other model that
incorporates the same novel or unusual
design feature, the proposed special
conditions would also apply to the other
model under § 21.101.
In addition to the applicable
airworthiness regulations and proposed
special conditions, the Boeing Model
777–200, –300, and –300ER series
airplanes must comply with the fuel
vent and exhaust emission requirements
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
68985
of 14 CFR part 34 and the noise
certification requirements of 14 CFR
part 36 and the FAA must issue a
finding of regulatory adequacy under
§ 611 of Public Law 92–574, the ‘‘Noise
Control Act of 1972.’’
The FAA issues special conditions, as
defined in 14 CFR 11.19, under § 11.38,
and they become part of the typecertification basis under § 21.17(a)(2).
Novel or Unusual Design Features
The Boeing Model 777–200, –300,
–300ER series airplanes will incorporate
the following novel or unusual design
features: An onboard computer network
system, and a network extension device.
The network extension device will
improve domain separation between the
airplane information services domain
and the aircraft control domain. The
proposed architecture and network
configuration may be used for, or
interfaced with, a diverse set of
functions, including:
1. Flight-safety related control and
navigation systems,
2. Operator business and
administrative support (operator
information services),
3. Passenger information systems,
and,
4. Access by systems internal to the
airplane.
Discussion
The integrated network configurations
in the Boeing Model 777–200, –300, and
–300ER series airplanes may enable
increased connectivity with external
network sources and will have more
interconnected networks and systems,
such as passenger entertainment and
information services than previous
airplane models. This may enable the
exploitation of network security
vulnerabilities and increased risks
potentially resulting in unsafe
conditions for the airplanes and
occupants. This potential exploitation of
security vulnerabilities may result in
intentional or unintentional destruction,
disruption, degradation, or exploitation
of data and systems critical to the safety
and maintenance of the airplane. The
existing regulations and guidance
material did not anticipate these types
of system architectures. Furthermore, 14
CFR regulations and current system
safety assessment policy and techniques
do not address potential security
vulnerabilities which could be exploited
by unauthorized access to airplane
networks and servers. Therefore, these
special conditions are being issued to
ensure that the security (i.e.,
confidentiality, integrity, and
availability) of airplane systems is not
compromised by unauthorized wired or
E:\FR\FM\18NOR1.SGM
18NOR1
]]>Agencies
[Federal Register Volume 78, Number 222 (Monday, November 18, 2013)]
[Rules and Regulations]
[Pages 68983-68985]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27533]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 27
[AMS-CN-13-0043]
RIN 0581-AD33
Cotton Futures Classification: Optional Classification Procedure
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Marketing Service (AMS) is amending
regulations to allow for the addition of an optional cotton futures
classification procedure--identified and known as ``registration'' by
the U.S. cotton industry and the Intercontinental Exchange (ICE). In
response to requests from the U.S. cotton industry and ICE, AMS will
offer a futures classification option whereby cotton bales may be
certificated for the purpose of an exchange's cotton futures contract
using Smith-Doxey data to verify that submitted bales meet more
restrictive quality requirements and age parameters established by that
exchange. AMS anticipates that the futures classification option will
be available in time for the implementation of ICE's Cotton Resolution
No. 2, which is scheduled to commence with the March 2014 contract
month.
DATES: Effective Date: November 19, 2013.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Program, AMS, USDA, 3275 Appling Road, Room 11,
Memphis, TN 38133. Telephone (901) 384-3060, facsimile (901) 384-3021,
or email darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
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. There
are no administrative procedures that must be exhausted prior to any
judicial challenge to the provisions of this rule.
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 businesses.
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 60 cotton merchant
organizations of various sizes active in trading U.S. cotton. Cotton
merchants voluntarily use the AMS cotton futures classification
services 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 Sec.
121.201). Establishing the registration option for cotton futures
classification will not significantly affect small businesses as
defined in the RFA because:
(1) The established user fee for cotton futures classification
services is $3.50 per bale (7 CFR Sec. 27.80). Users choosing the
registration option would incur no additional charges;
(2) The established cotton futures classification fee represents a
very small portion of the cost per-unit currently borne by those
entities utilizing the service;
(3) The average price paid to producers for cotton from the 2012
crop was 73.22 cents per pound, making a 500 pound bale of cotton worth
an average of $366.10. The current user fee
[[Page 68984]]
for futures classification services, $3.50 per bale, is less than one
percent of the average value of a bale of cotton;
(4) The fee for this service will not affect competition in the
marketplace;
(5) The futures classification option is expected to streamline
marketing and create logistical efficiencies for all entities utilizing
this option; and
(6) The use of futures classification services is voluntary. For
fiscal year 2013, there were 913,179 cotton futures samples
(approximately 5.4 percent of the 16,942,409 Smith-Doxey
classifications) voluntarily submitted for the futures classification
service.
In compliance with OMB regulations (5 CFR part 1320), which
implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501), the
information collection requirements associated with this rule have been
previously approved by OMB and were assigned OMB control number 0581-
0008, Cotton Classing, Testing, And Standards.
Background
The Act requires USDA-verified quality measurements for each bale
to be included in futures contracts for the purpose of verifying that
each bale meets the minimum quality requirements for cotton futures
trading. Furthermore, the Act authorizes the charging of user fees
required to recover the cost associated with providing futures quality
verification services.
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 AMS
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 data to assign
quality-adjusted market values to U.S. cotton and market U.S. cotton
both domestically and internationally. Smith-Doxey data is commonly
used by the cotton merchant community to indicate which bales may be
tenderable against a cotton futures contract.
Conventional procedures employed for verifying quality measurements
for bales to be included in futures contracts consists of two futures
classifications: 1) initial futures classification and 2) final futures
classification. AMS, Cotton and Tobacco Program revised these
procedures to incorporate Smith-Doxey data into the cotton futures
classification process in March 2012 (77 FR 5379). When verified by a
futures classification, Smith-Doxey data serves as an initial futures
classification with the verifying futures classification serving as a
final futures classification. The use of Smith-Doxey data significantly
reduced the number of futures classifications required for many of the
bales that were submitted for certification.
The successful incorporation of Smith-Doxey data into the futures
classification procedures prompted the U.S. cotton industry and ICE to
request that the AMS, Cotton and Tobacco Program use Smith-Doxey data
to certify that bales submitted for quality verification meet more
restrictive quality requirements and age parameters set by ICE for use
in a cotton futures contract. The U.S. cotton industry and ICE refer to
this optional procedure as the ``registration option''.
The established user fee for cotton futures classification services
is $3.50 per bale (7 CFR 27.80). Customers choosing this cotton futures
classification option will incur this charge. In the event that AMS
determines that a bale submitted under this option fails to meet
quality or age parameters set by the exchange inspection agency, the
owner of the bale will be notified of the bale's failure.
AMS, Cotton and Tobacco Program is amending regulations in 7 CFR
part 27 to allow for the use of original Smith-Doxey data to certify
that bales submitted for quality verification meet quality and age
parameters set by the applicable exchange inspection agency.
Accordingly, the definition of ``Classification'' in Sec. 27.2,
paragraph (n) is amended to allow the registration option for the
futures classification services. Also in Sec. 27.2, the term ``Smith-
Doxey data'' is defined in new paragraphs (p).
Summary of Comments
A proposed rule was published in the Federal Register on September
9, 2013, with a comment period of September 9, 2013 through October 9,
2013 (78 FR 54970). AMS received two comments: one from a national
trade organization representing cotton merchant firms that handle over
80 percent of the U.S. cotton sold in domestic and foreign markets; and
one from an American commodities exchange that operates regulated
exchanges and clearing houses for energy, agricultural, credit,
currency, emissions, and equity index products. Both comments expressed
support for all provisions outlined in the proposed rule and the future
classification services provided by the AMS Cotton and Tobacco Program.
Comments may be viewed at www.regulations.gov.
The U.S. cotton industry and ICE requested that AMS, Cotton and
Tobacco Program make this option available in December 2013 to coincide
with the implementation of ICE's Cotton Resolution No. 2, which is
scheduled to commence with the March 2014 contract month. Accordingly,
pursuant to 5 U.S.C. 553, it is found and determined that good cause
exists for not postponing the effective date of this rule until 30 days
after publication in the Federal Register.
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
to read as follows:
PART 27--[AMENDED]
0
1. The authority citation for 7 CFR part 27 is revised to read as
follows:
Authority: 7 U.S.C. 15b, 7 U.S.C. 473b, 7 U.S.C. 1622(g).
0
2. In Sec. 27.2, paragraph (n) is revised and new paragraph (p) is
added to read as follows:
Sec. 27.2 Terms defined.
* * * * *
(n) Classification. The classification of any cotton shall be
determined by the quality of a sample in accordance with the Universal
Cotton Standards (the official cotton standards of the United States)
for cotton property measurements of American Upland cotton. High Volume
Instruments will determine all cotton property measurements except
extraneous matter. Cotton classers authorized by the Cotton and Tobacco
Program will determine the presence of extraneous matter. Original
Smith-Doxey data may serve as certification that bales submitted for
quality verification meet quality and age parameters set by an
applicable exchange inspection agency as a futures classification
option.
* * * * *
(p) Smith-Doxey data. Data reflecting the original classification
of a cotton bale provided to producers of cotton under the Smith-Doxey
Act of April 13, 1937 (Pub. L. 75-28).
[[Page 68985]]
Dated: November 5, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-27533 Filed 11-15-13; 8:45 am]
BILLING CODE 3410-02-P
