Processed Raspberry Promotion, Research, and Information Order; Late Payment and Interest Charges on Past Due Assessments, 67103-67105 [2014-26677]
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67103
Proposed Rules
Federal Register
Vol. 79, No. 218
Wednesday, November 12, 2014
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1208
[Document Number AMS–FV–14–0042]
Processed Raspberry Promotion,
Research, and Information Order; Late
Payment and Interest Charges on Past
Due Assessments
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposal invites
comments on prescribing late payment
and interest charges on past due
assessments under the Processed
Raspberry Promotion, Research, and
Information Order (Order). The Order is
administered by the National Processed
Raspberry Council (Council) with
oversight by the U.S. Department of
Agriculture (USDA). Under the Order,
assessments are collected from domestic
producers and importers and used for
research and promotion projects
designed to maintain and expand the
market for processed raspberries. This
proposal would implement authority
contained in the Order that allows the
Council to collect late payment and
interest charges on past due
assessments. Three additional changes
are proposed to reflect current practices
and update the Order and regulations.
This action would contribute to
effective administration of the program.
DATES: Comments must be received by
December 12, 2014.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposal. Comments
may be submitted on the Internet at:
http://www.regulations.gov or to the
Promotion and Economics Division,
Fruit and Vegetable Program, AMS,
USDA, 1400 Independence Avenue
SW., Room 1406–S, Stop 0244,
Washington, DC 20250–0244; facsimile:
(202) 205–2800. All comments should
reference the document number and the
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SUMMARY:
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date and page number of this issue of
the Federal Register and will be made
available for public inspection,
including name and address, if
provided, in the above office during
regular business hours or it can be
viewed at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Tarun Harit, Program Management
Specialist, Promotion and Economics
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., Room 1406–S, Stop 0244,
Washington, DC 20250–0244; telephone:
(202) 720–9915; facsimile (202) 205–
2800; or electronic mail: Tarun.Harit@
ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
proposal is issued under the Order (7
CFR part 1208). The Order is authorized
under the Commodity Promotion,
Research, and Information Act of 1996
(1996 Act) (7 U.S.C. 7411–7425).
Executive Order 12866 and Executive
Order 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules and promoting
flexibility. This action has been
designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
(OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation would not have
substantial and direct effects on Tribal
governments and would not have
significant Tribal implications.
Executive Order 12988
This proposal has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 524 of
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Sfmt 4702
the 1996 Act (7 U.S.C. 7423) provides
that it shall not affect or preempt any
other Federal or State law authorizing
promotion or research relating to an
agricultural commodity.
Under section 519 of the 1996 Act (7
U.S.C. 7418), a person subject to an
order may file a written petition with
USDA stating that an order, any
provision of an order, or any obligation
imposed in connection with an order, is
not established in accordance with the
law, and request a modification of an
order or an exemption from an order.
Any petition filed challenging an order,
any provision of an order, or any
obligation imposed in connection with
an order, shall be filed within two years
after the effective date of an order,
provision, or obligation subject to
challenge in the petition. The petitioner
will have the opportunity for a hearing
on the petition. Thereafter, USDA will
issue a ruling on the petition. The 1996
Act provides that the district court of
the United States for any district in
which the petitioner resides or conducts
business shall have the jurisdiction to
review a final ruling on the petition, if
the petitioner files a complaint for that
purpose not later than 20 days after the
date of the entry of USDA’s final ruling.
Background
This proposal invites comments on
prescribing late payment and interest
charges on past due assessments under
the Order. The Order is administered by
the Council with oversight by USDA.
Under the Order, assessments are
collected from domestic producers and
importers and used for research and
promotion projects designed to maintain
and expand markets for processed
raspberries. Processed raspberries
include raspberries that have been
frozen, dried, pureed, made into juice,
or altered by mechanical processes. This
proposal would implement authority
contained in the Order and the 1996 Act
that allows the Council to collect late
payment and interest charges on past
due assessments. This action was
unanimously recommended by the
Council and would contribute to
effective administration of the program.
Section 1208.52(a) of the Order
specifies that the funds to cover the
Council’s expenses shall be paid from
assessments on producers and
importers, donations from persons not
subject to assessments, and from other
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Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Proposed Rules
TKELLEY on DSK3SPTVN1PROD with PROPOSALS
funds available to the Council.
Paragraph (b) specifies that the
collection of assessments on domestic
processed raspberries is the
responsibility of the first receiving
handler of the raspberries for
processing. Section 1208.52 (6)(e)
specifies that ‘‘a late payment charge
shall be imposed on any handler or
importer who fails to remit to the
Council, the total amount for which any
such first handler or importer is liable
on or before the due date established by
the Council. In addition to the late
payment charge, an interest charge shall
be imposed on the outstanding amount
for which the first handler or importer
is liable. The rate of interest shall be
prescribed in regulations issued by the
Secretary.’’
The Order was implemented in May
2012. Assessment collection began in
September 2012. Domestic assessments
are due to the Council once annually by
October 31. Import assessments are
collected monthly by the U.S. Customs
and Border Protection (Customs). If
Customs does not collect the
assessment, the importer must pay the
assessment directly to the Council.
Entities that produce less than 20,000
pounds of raspberries for processing
annually or import less than 20,000
pounds of processed raspberries
annually are exempt from assessment.
Assessment funds are used by the
Council for activities designed to benefit
all industry members. Thus, it is
important that all assessed entities pay
their assessments in a timely manner.
Entities who fail to pay their
assessments on time would be able to
reap the benefits of Council programs at
the expense of others. In addition, they
would be able to utilize funds for their
own use that should otherwise be paid
to the Council to finance Council
programs.
Council Recommendation
Thus, the Council met on January 15,
2014, and unanimously recommended
specifying rates of late payment charges
and interest on past due assessments in
the Order’s regulations. Specifically, the
Council recommended that a late
payment charge be imposed on any
handler or importer who fails to make
timely remittance to the Council of the
total assessments for which the handler
or importer is liable. The late payment
would be imposed on any assessments
not received within 30 calendar days of
the date they are due. This would be a
one-time late payment charge equal to
10 percent of the assessments due before
interest charges have accrued. The
Council also recommended that 1
percent per month interest on the
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outstanding balance, including any late
payment and accrued interest, be added
to any accounts for which payment has
not been received within 30 calendar
days after the date assessments are due.
Interest would continue to accrue
monthly until the unpaid balance was
paid to the Council.
This action would help facilitate
program administration by providing an
incentive for entities to remit
assessments in a timely manner, with
the intent of creating a fair and equitable
process among all assessed entities.
Accordingly, a new subpart C would be
added to the Order for rules and
regulations, and a new § 1208.520
would be added to subpart C.
This proposal would also make three
additional changes to the Order. This
proposed rule would revise the terms
crop and fiscal years as defined in
§§ 1208.3 and 1208.7, respectively. The
crop and fiscal years are changed in the
Order from the 12-month period April 1
through March 31 to October 1 through
September 30. The new time frames
help facilitate program operations
because domestic assessments are due
by October 31, so those funds can be
used to support current year activities.
Revising the terms would bring the
Order in line with current practices.
This proposal would also change the
OMB control numbers in §§ 1208.78 and
1208.108. In § 1208.78, the OMB control
number 0581–0257 would be omitted
because it is no longer relevant. In
§§ 1208.108, the OMB control number
would be changed from 0581–NEW to
0581–0093, the control number assigned
by the OMB.
Initial 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 the proposed rule on small
entities. Accordingly, AMS has
considered the economic impact of this
action on small entities.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions so
that small businesses will not be
disproportionately burdened. The Small
Business Administration 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 (first
handlers and importers) as those having
annual receipts of no more than $7.0
million.
According to the Council, it is
estimated that there are 160 producers
of raspberries for processing and 30 first
handlers of processed raspberries in the
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Fmt 4702
Sfmt 4702
United States. Dividing the processed
raspberry crop value for 2013 reported
by the National Agricultural Statistics
Service (NASS) of $60,883,000 1 by the
number of producers yields an average,
annual producer revenue of $380,520. It
is estimated that in 2013, 75 percent of
the first handlers shipped under $7.0
million worth of processed raspberries.
Likewise, based on Customs data, it is
estimated there are 140 importers of
processed raspberries. Using 2013
Customs data, nearly all importers, or 99
percent, import less than $7.0 million
worth of processed raspberries annually.
Thus, the majority of domestic
producers, first handlers and importers
of processed raspberries would be
considered small entities.
Regarding the value of the
commodity, as mentioned above, based
on 2013 NASS data, the value of the
domestic processed raspberry crop was
about $61 million. According to
Customs data, the value of 2013 imports
was about $65 million.
This proposal invites comments on
prescribing late payment and interest
charges on past due assessments under
the Order. The Order is administered by
the Council with oversight by USDA.
Under the Order, assessments are
collected from domestic producers of
raspberries for processing and importers
of processed raspberries. Processed
raspberries include raspberries that have
been frozen, dried, pureed, made into
juice, or altered by mechanical
processes. This proposed rule would
add a new § 1208.520 that would
specify a late payment charge of 10
percent of the assessments due and
interest at a rate of 1 percent per month
on the outstanding balance, including
any late payment and accrued interest.
This section would be included in a
new Subpart C—Rules and Regulations.
This action was unanimously
recommended by the Council and is
authorized under section 1208.52(e) of
the Order and section 517(e) of the 1996
Act.
Regarding the economic impact of this
proposed rule on affected entities, this
action would impose no costs on
handlers and importers who pay their
assessments on time. It would merely
provide an incentive for entities to remit
their assessments in a timely manner.
For all entities who are delinquent in
paying assessments, both large and
small, the charges would be applied the
same. As for the impact on the industry
as a whole, this action would help
facilitate program administration by
1 Noncitrus Fruits and Nuts 2013 Summary, July
2014, USDA, National Agricultural Statistics
Service, p. 37.
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TKELLEY on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Proposed Rules
providing an incentive for entities to
remit their assessments in a timely
manner, with the intent of creating a fair
and equitable process among all
assessed entities.
Additionally, as previously
mentioned, the Order provides for an
exemption for entities that produce or
import less than 20,000 pounds of
processed raspberries annually. About
140 producers of raspberries for
processing and 80 importers of
processed raspberries pay assessments
under the Order.
Regarding alternatives, one option to
the proposed action would be to
maintain the status quo and not
prescribe late payment and interest
charges for past due assessments.
However, the Council determined that
implementing such charges would help
facilitate program administration by
encouraging entities to pay their
assessments in a timely manner. The
Council reviewed rates of late payment
and interest charges prescribed in other
research and promotion programs and
concluded that a 10 percent late
payment charge and interest at a rate of
1 percent per month on the outstanding
balance would be appropriate.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
and recordkeeping requirements that are
imposed by the Order have been
approved under OMB control number
0581–0093. This proposed rule would
not result in a change to the information
collection and recordkeeping
requirements previously approved and
would impose no additional reporting
and recordkeeping burden on domestic
producers, first handlers, and importers
of processed raspberries.
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 proposed rule.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
Regarding outreach efforts, the
Council met on January 15, 2014, and
unanimously made its recommendation.
All of the Council’s meetings, including
meetings held via teleconference, are
open to the public and interested
persons are invited to participate and
express their views.
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We have performed this initial RFA
regarding the impact of this proposed
action on small entities and we invite
comments concerning potential effects
of this action on small businesses.
While this proposed rule set forth
below has not received the approval of
USDA, it has been determined that it is
consistent with and would effectuate
the purposes of the 1996 Act.
A 30-day comment period is provided
to allow interested persons to respond
to this proposal. Thirty-days is deemed
appropriate because the Council would
like to implement this incentive as soon
as possible to facilitate the collection of
assessments on a timely basis. All
written comments received in response
to this proposed rule by the date
specified will be considered prior to
finalizing this action.
List of Subjects in 7 CFR Part 1208
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Raspberry promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 1208 is proposed
to be amended as follows:
PART 1208—PROCESSED
RASPBERRY PROMOTION,
RESEARCH, AND INFORMATION
ORDER
1. The authority citation for 7 CFR
part 1208 continues to read as follows:
■
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
2. Section 1208.3 is revised to read as
follows:
■
§ 1208.3
§ 1208.108
67105
OMB control number.
The control number assigned to the
information collection requirement in
this subpart by the Office of
Management and Budget pursuant to the
Paperwork Reduction Act of 1995, 44
U.S.C. Chapter 35, is OMB control
number 0581–0093.
■ 6. Subpart C—Rules and Regulations
is added to read as follows:
Subpart C—Rules and Regulations
§ 1208.520 Late payment and interest
charges for past due assessments.
(1) A late payment charge shall be
imposed on any handler or importer
who fails to make timely remittance to
the Council of the total assessments for
which such handler or importer is
liable. The late payment will be
imposed on any assessments not
received within 30 calendar days of the
date they are due. This one-time late
payment charge shall be 10 percent of
the assessments due before interest
charges have accrued.
(2) In addition to the late payment
charge, 1 percent per month interest on
the outstanding balance, including any
late payment and accrued interest, will
be added to any accounts for which
payment has not been received by the
Council within 30 calendar days after
the date the assessments are due. Such
interest will continue to accrue monthly
until the outstanding balance is paid to
the Council.
Dated: November 5, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014–26677 Filed 11–10–14; 8:45 am]
BILLING CODE P
Crop year.
Crop year means the 12-month period
from October 1 through September 30 or
such other period approved by the
Secretary.
■ 3. Section 1208.7 is revised to read as
follows:
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
§ 1208.7
21 CFR Part 888
Fiscal period.
Fiscal period means the 12-month
period from October 1 through
September 30 or such other period as
approved by the Secretary.
■ 4. Section 1208.78 is revised to read
as follows:
§ 1208.78
OMB control numbers.
The control numbers assigned to the
information collection requirements by
the Office of Management and Budget
pursuant to the Paperwork Reduction
Act of 1995, 44 U.S.C. Chapter 35, are
OMB control number 0505–0001, and
OMB control number 0581–0093.
■ 5. Section 1208.108 is revised to read
as follows:
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Food and Drug Administration
[Docket No. FDA–2014–N–1205]
Orthopedic Devices; Reclassification
of Thoracolumbosacral Rigid Pedicle
Screw Systems; Classification and
Effective Date of Requirement for
Premarket Approval for Dynamic
Stabilization Systems
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Proposed order.
The Food and Drug
Administration (FDA) is proposing in
this administrative order to reclassify
rigid pedicle screw systems, a
SUMMARY:
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Agencies
[Federal Register Volume 79, Number 218 (Wednesday, November 12, 2014)]
[Proposed Rules]
[Pages 67103-67105]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26677]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 /
Proposed Rules
[[Page 67103]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1208
[Document Number AMS-FV-14-0042]
Processed Raspberry Promotion, Research, and Information Order;
Late Payment and Interest Charges on Past Due Assessments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposal invites comments on prescribing late payment and
interest charges on past due assessments under the Processed Raspberry
Promotion, Research, and Information Order (Order). The Order is
administered by the National Processed Raspberry Council (Council) with
oversight by the U.S. Department of Agriculture (USDA). Under the
Order, assessments are collected from domestic producers and importers
and used for research and promotion projects designed to maintain and
expand the market for processed raspberries. This proposal would
implement authority contained in the Order that allows the Council to
collect late payment and interest charges on past due assessments.
Three additional changes are proposed to reflect current practices and
update the Order and regulations. This action would contribute to
effective administration of the program.
DATES: Comments must be received by December 12, 2014.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments may be submitted on the Internet at:
http://www.regulations.gov or to the Promotion and Economics Division,
Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW.,
Room 1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202)
205-2800. All comments should reference the document number and the
date and page number of this issue of the Federal Register and will be
made available for public inspection, including name and address, if
provided, in the above office during regular business hours or it can
be viewed at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Tarun Harit, Program Management
Specialist, Promotion and Economics Division, Fruit and Vegetable
Program, AMS, USDA, 1400 Independence Avenue SW., Room 1406-S, Stop
0244, Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile
(202) 205-2800; or electronic mail: Tarun.Harit@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposal is issued under the Order (7
CFR part 1208). The Order is authorized under the Commodity Promotion,
Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Order 12866 and Executive Order 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action has been designated as a ``non-significant regulatory
action'' under section 3(f) of Executive Order 12866. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation would not
have substantial and direct effects on Tribal governments and would not
have significant Tribal implications.
Executive Order 12988
This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. Section
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect
or preempt any other Federal or State law authorizing promotion or
research relating to an agricultural commodity.
Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA stating that an
order, any provision of an order, or any obligation imposed in
connection with an order, is not established in accordance with the
law, and request a modification of an order or an exemption from an
order. Any petition filed challenging an order, any provision of an
order, or any obligation imposed in connection with an order, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The 1996 Act provides that the
district court of the United States for any district in which the
petitioner resides or conducts business shall have the jurisdiction to
review a final ruling on the petition, if the petitioner files a
complaint for that purpose not later than 20 days after the date of the
entry of USDA's final ruling.
Background
This proposal invites comments on prescribing late payment and
interest charges on past due assessments under the Order. The Order is
administered by the Council with oversight by USDA. Under the Order,
assessments are collected from domestic producers and importers and
used for research and promotion projects designed to maintain and
expand markets for processed raspberries. Processed raspberries include
raspberries that have been frozen, dried, pureed, made into juice, or
altered by mechanical processes. This proposal would implement
authority contained in the Order and the 1996 Act that allows the
Council to collect late payment and interest charges on past due
assessments. This action was unanimously recommended by the Council and
would contribute to effective administration of the program.
Section 1208.52(a) of the Order specifies that the funds to cover
the Council's expenses shall be paid from assessments on producers and
importers, donations from persons not subject to assessments, and from
other
[[Page 67104]]
funds available to the Council. Paragraph (b) specifies that the
collection of assessments on domestic processed raspberries is the
responsibility of the first receiving handler of the raspberries for
processing. Section 1208.52 (6)(e) specifies that ``a late payment
charge shall be imposed on any handler or importer who fails to remit
to the Council, the total amount for which any such first handler or
importer is liable on or before the due date established by the
Council. In addition to the late payment charge, an interest charge
shall be imposed on the outstanding amount for which the first handler
or importer is liable. The rate of interest shall be prescribed in
regulations issued by the Secretary.''
The Order was implemented in May 2012. Assessment collection began
in September 2012. Domestic assessments are due to the Council once
annually by October 31. Import assessments are collected monthly by the
U.S. Customs and Border Protection (Customs). If Customs does not
collect the assessment, the importer must pay the assessment directly
to the Council. Entities that produce less than 20,000 pounds of
raspberries for processing annually or import less than 20,000 pounds
of processed raspberries annually are exempt from assessment.
Assessment funds are used by the Council for activities designed to
benefit all industry members. Thus, it is important that all assessed
entities pay their assessments in a timely manner. Entities who fail to
pay their assessments on time would be able to reap the benefits of
Council programs at the expense of others. In addition, they would be
able to utilize funds for their own use that should otherwise be paid
to the Council to finance Council programs.
Council Recommendation
Thus, the Council met on January 15, 2014, and unanimously
recommended specifying rates of late payment charges and interest on
past due assessments in the Order's regulations. Specifically, the
Council recommended that a late payment charge be imposed on any
handler or importer who fails to make timely remittance to the Council
of the total assessments for which the handler or importer is liable.
The late payment would be imposed on any assessments not received
within 30 calendar days of the date they are due. This would be a one-
time late payment charge equal to 10 percent of the assessments due
before interest charges have accrued. The Council also recommended that
1 percent per month interest on the outstanding balance, including any
late payment and accrued interest, be added to any accounts for which
payment has not been received within 30 calendar days after the date
assessments are due. Interest would continue to accrue monthly until
the unpaid balance was paid to the Council.
This action would help facilitate program administration by
providing an incentive for entities to remit assessments in a timely
manner, with the intent of creating a fair and equitable process among
all assessed entities. Accordingly, a new subpart C would be added to
the Order for rules and regulations, and a new Sec. 1208.520 would be
added to subpart C.
This proposal would also make three additional changes to the
Order. This proposed rule would revise the terms crop and fiscal years
as defined in Sec. Sec. 1208.3 and 1208.7, respectively. The crop and
fiscal years are changed in the Order from the 12-month period April 1
through March 31 to October 1 through September 30. The new time frames
help facilitate program operations because domestic assessments are due
by October 31, so those funds can be used to support current year
activities. Revising the terms would bring the Order in line with
current practices.
This proposal would also change the OMB control numbers in
Sec. Sec. 1208.78 and 1208.108. In Sec. 1208.78, the OMB control
number 0581-0257 would be omitted because it is no longer relevant. In
Sec. Sec. 1208.108, the OMB control number would be changed from 0581-
NEW to 0581-0093, the control number assigned by the OMB.
Initial 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 the proposed rule on
small entities. Accordingly, AMS has considered the economic impact of
this action on small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration 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
(first handlers and importers) as those having annual receipts of no
more than $7.0 million.
According to the Council, it is estimated that there are 160
producers of raspberries for processing and 30 first handlers of
processed raspberries in the United States. Dividing the processed
raspberry crop value for 2013 reported by the National Agricultural
Statistics Service (NASS) of $60,883,000 \1\ by the number of producers
yields an average, annual producer revenue of $380,520. It is estimated
that in 2013, 75 percent of the first handlers shipped under $7.0
million worth of processed raspberries.
---------------------------------------------------------------------------
\1\ Noncitrus Fruits and Nuts 2013 Summary, July 2014, USDA,
National Agricultural Statistics Service, p. 37.
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Likewise, based on Customs data, it is estimated there are 140
importers of processed raspberries. Using 2013 Customs data, nearly all
importers, or 99 percent, import less than $7.0 million worth of
processed raspberries annually. Thus, the majority of domestic
producers, first handlers and importers of processed raspberries would
be considered small entities.
Regarding the value of the commodity, as mentioned above, based on
2013 NASS data, the value of the domestic processed raspberry crop was
about $61 million. According to Customs data, the value of 2013 imports
was about $65 million.
This proposal invites comments on prescribing late payment and
interest charges on past due assessments under the Order. The Order is
administered by the Council with oversight by USDA. Under the Order,
assessments are collected from domestic producers of raspberries for
processing and importers of processed raspberries. Processed
raspberries include raspberries that have been frozen, dried, pureed,
made into juice, or altered by mechanical processes. This proposed rule
would add a new Sec. 1208.520 that would specify a late payment charge
of 10 percent of the assessments due and interest at a rate of 1
percent per month on the outstanding balance, including any late
payment and accrued interest. This section would be included in a new
Subpart C--Rules and Regulations. This action was unanimously
recommended by the Council and is authorized under section 1208.52(e)
of the Order and section 517(e) of the 1996 Act.
Regarding the economic impact of this proposed rule on affected
entities, this action would impose no costs on handlers and importers
who pay their assessments on time. It would merely provide an incentive
for entities to remit their assessments in a timely manner. For all
entities who are delinquent in paying assessments, both large and
small, the charges would be applied the same. As for the impact on the
industry as a whole, this action would help facilitate program
administration by
[[Page 67105]]
providing an incentive for entities to remit their assessments in a
timely manner, with the intent of creating a fair and equitable process
among all assessed entities.
Additionally, as previously mentioned, the Order provides for an
exemption for entities that produce or import less than 20,000 pounds
of processed raspberries annually. About 140 producers of raspberries
for processing and 80 importers of processed raspberries pay
assessments under the Order.
Regarding alternatives, one option to the proposed action would be
to maintain the status quo and not prescribe late payment and interest
charges for past due assessments. However, the Council determined that
implementing such charges would help facilitate program administration
by encouraging entities to pay their assessments in a timely manner.
The Council reviewed rates of late payment and interest charges
prescribed in other research and promotion programs and concluded that
a 10 percent late payment charge and interest at a rate of 1 percent
per month on the outstanding balance would be appropriate.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
that are imposed by the Order have been approved under OMB control
number 0581-0093. This proposed rule would not result in a change to
the information collection and recordkeeping requirements previously
approved and would impose no additional reporting and recordkeeping
burden on domestic producers, first handlers, and importers of
processed raspberries.
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 proposed rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
Regarding outreach efforts, the Council met on January 15, 2014,
and unanimously made its recommendation. All of the Council's meetings,
including meetings held via teleconference, are open to the public and
interested persons are invited to participate and express their views.
We have performed this initial RFA regarding the impact of this
proposed action on small entities and we invite comments concerning
potential effects of this action on small businesses.
While this proposed rule set forth below has not received the
approval of USDA, it has been determined that it is consistent with and
would effectuate the purposes of the 1996 Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. Thirty-days is deemed appropriate because the
Council would like to implement this incentive as soon as possible to
facilitate the collection of assessments on a timely basis. All written
comments received in response to this proposed rule by the date
specified will be considered prior to finalizing this action.
List of Subjects in 7 CFR Part 1208
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Raspberry promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1208 is
proposed to be amended as follows:
PART 1208--PROCESSED RASPBERRY PROMOTION, RESEARCH, AND INFORMATION
ORDER
0
1. The authority citation for 7 CFR part 1208 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Section 1208.3 is revised to read as follows:
Sec. 1208.3 Crop year.
Crop year means the 12-month period from October 1 through
September 30 or such other period approved by the Secretary.
0
3. Section 1208.7 is revised to read as follows:
Sec. 1208.7 Fiscal period.
Fiscal period means the 12-month period from October 1 through
September 30 or such other period as approved by the Secretary.
0
4. Section 1208.78 is revised to read as follows:
Sec. 1208.78 OMB control numbers.
The control numbers assigned to the information collection
requirements by the Office of Management and Budget pursuant to the
Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, are OMB control
number 0505-0001, and OMB control number 0581-0093.
0
5. Section 1208.108 is revised to read as follows:
Sec. 1208.108 OMB control number.
The control number assigned to the information collection
requirement in this subpart by the Office of Management and Budget
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35,
is OMB control number 0581-0093.
0
6. Subpart C--Rules and Regulations is added to read as follows:
Subpart C--Rules and Regulations
Sec. 1208.520 Late payment and interest charges for past due
assessments.
(1) A late payment charge shall be imposed on any handler or
importer who fails to make timely remittance to the Council of the
total assessments for which such handler or importer is liable. The
late payment will be imposed on any assessments not received within 30
calendar days of the date they are due. This one-time late payment
charge shall be 10 percent of the assessments due before interest
charges have accrued.
(2) In addition to the late payment charge, 1 percent per month
interest on the outstanding balance, including any late payment and
accrued interest, will be added to any accounts for which payment has
not been received by the Council within 30 calendar days after the date
the assessments are due. Such interest will continue to accrue monthly
until the outstanding balance is paid to the Council.
Dated: November 5, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014-26677 Filed 11-10-14; 8:45 am]
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