Honey Packers and Importers Research, Promotion, Consumer Education and Information Order; Assessment Rate Increase, 68636-68640 [2014-27253]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 79, Number 222 (Tuesday, November 18, 2014)]
[Proposed Rules]
[Pages 68636-68640]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27253]


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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.

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Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / 
Proposed Rules

[[Page 68636]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1212

[Document Number AMS-FV-14-0045]


Honey Packers and Importers Research, Promotion, Consumer 
Education and Information Order; Assessment Rate Increase

AGENCY: Agricultural Marketing Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on amending the Honey 
Packers and Importers Research, Promotion, Consumer Education and 
Information Order (Order) to increase the assessment rate from $0.01 
per pound to $0.015 per pound on honey and honey products, over a two-
year period. The Order limits an increase in the assessment rate to no 
more than one-quarter cent per year. Thus, the rate would increase to 
$0.0125 per pound for the period January 1 through December 31, 2015, 
and to $0.015 per pound on and after January 1, 2016. The Order is 
administered by the Honey Packers and Importers Board (Board) with 
oversight by the U.S. Department of Agriculture (USDA). Under the 
program, assessments are collected from first handlers (packers) and 
importers and used for research and promotion projects designed to 
maintain and expand the market for honey and honey products in the 
United States and abroad. Additional funds would allow the Board to 
expand its production research activities and promotional efforts. The 
Boards production research focuses on maintaining the health of honey 
bee colonies. Increasing demand for honey and honey products would 
benefit the honey industry as a whole. This action also makes three 
additional changes to: Clarify that the assessment rate applies not 
only to the Harmonized Tariff Schedule numbers but to any other numbers 
used to identify honey; change the length of time that books and 
records are to be held; and change the exemption requirements.

DATES: Comments must be received by December 18, 2014.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments may be submitted on the Internet at: 
https://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. All comments should 
reference the docket 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 https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella, Marketing 
Specialist, Promotion Division and Economics, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., Room 1406-S, Stop 
0244, Washington, DC 20250-0244; telephone: (301) 334-2891; or 
electronic mail: Patricia.Petrella@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Order 
(7 CFR part 1212). 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 proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 524 of the 1996 Act provides that it shall not affect or 
preempt any other Federal or State law authorizing promotion or 
research relating to an agricultural commodity.
    Under section 519 of the 1996 Act, a person subject to an order may 
file a written petition with USDA stating that an order, any provision 
of an order, or any obligation imposed in connection with an order, is 
not established in accordance with the law, and request a modification 
of an order or an exemption from an order. Any petition filed 
challenging an order, any provision of an order, or any obligation 
imposed in connection with an order, shall be filed within two years 
after the effective date of an order, provision, or obligation subject 
to challenge in the petition. The petitioner will have the opportunity 
for a hearing on the petition. Thereafter, USDA will issue a ruling on 
the petition. The 1996 Act provides that the district court of the 
United States for any district in which the petitioner resides or 
conducts business shall have the jurisdiction to review a final ruling 
on the petition, if the petitioner files a complaint for that purpose 
not later than 20 days after the date of the entry of USDA's final 
ruling.

Background

    This proposed rule invites comments on amending the Order to 
increase the assessment rate from $0.01 to $0.015 per pound on honey 
and honey products over a two-year period. The Order limits an increase 
in the assessment rate to no more than one-quarter cent per year. Thus, 
the rate would increase to $0.0125 per pound for the period January 1 
through December 31, 2015, and to $0.015 per pound on and after January 
1, 2016. The Order is administered by

[[Page 68637]]

the Board with oversight by USDA. Under the program, assessments are 
collected from first handlers and importers and used for research and 
promotion projects designed to maintain and expand the market for honey 
and honey products in the United States and abroad. Additional funds 
would enable the Board to expand its production research activities and 
promotional efforts. The Board's production research focuses on 
maintaining the health of honey bee colonies. Promotional efforts focus 
on the innovative ways to market, promote, and utilize honey and honey 
products. Increasing demand for honey and honey products would benefit 
the honey industry as a whole. This action was unanimously recommended 
by the Board.
    The Order specifies that the funds to cover the Board's expenses 
shall be paid from assessments on first handlers and importers, 
donations from persons not subject to assessments, and from other funds 
available to the Board. First handlers are required to file reports and 
maintain records on the total quantity of honey and honey products 
acquired during the reporting period, the quantity of honey processed 
for sale from the handler's own production, and the quantity of honey 
purchased from a handler or importer responsible for paying the 
assessment due. Importers are required to report the total quantity of 
honey and honey products imported during each reporting period, and 
keep a record of each lot of honey and honey products imported during 
such period, including the quantity, date, country of origin, and port 
of entry. Importers are responsible for paying assessments to the Board 
on honey and honey products imported into the United States through the 
U.S. Customs and Border Protection (Customs). The Order also provides 
for two exemptions. First handlers who handle less than 250,000 pounds 
and importers who import less than 250,000 pounds of honey and honey 
products annually, and first handlers and importers of 100 percent 
organic honey and honey products are exempt from the payment of 
assessments.
    Section 1212.52 of the Order specifies that assessments shall be 
levied at a rate of $0.01 per pound on all honey and honey products. 
The Board may recommend to the Secretary an increase or decrease in the 
assessment as it deems appropriate by at least a two-thirds vote of 
members present at a meeting of the Board. The Board may not recommend 
an increase in the assessment of more than $0.02 per pound of honey or 
honey products and may not increase the assessment by more than $0.0025 
in any single fiscal year.
    The $0.01 per pound assessment rate has been in effect since the 
Order's inception in 2008. The Board's fiscal year runs from January 1 
through December 31. Board expenditures have ranged from $4,157,250 for 
its first full year in 2009 to $4,556,490 in 2013. Expenditures for 
research have ranged from $465,579 in 2009 (11 percent of total 
expenses) to $231,234 in 2013 (5 percent of total expenses). Board 
expenditures for health messaging and promotion activities have ranged 
from $2,311,370 in 2009 (56 percent of total expenses) to $2,859,743 in 
2013 (63 percent of total expenses). Pursuant to section 1212.50(h) of 
the Order, administrative expenditures have been less than 15 percent 
of total expenses annually.
    Board assessment income has ranged from $3,345,543 in 2009 
($2,085,204 in domestic assessments and $1,260,339 in import 
assessments) to $4,443,798 in 2013 ($1,122,390 in domestic assessments 
and $3,321,408 in import assessments). Additionally, pursuant to 
section 1212.54 of the Order, the Board maintains a monetary reserve 
with funds that do not exceed one fiscal period's budget.

Board 2013 Recommendation

    The Board held a teleconference on January 23, 2014, and 
unanimously recommended increasing its assessment rate from $0.01 to 
$0.015 per pound on honey and honey products over a two-year period. 
The Order limits an increase in the assessment rate to no more than 
one-quarter cent per year. Thus, the rate would increase to $0.0125 per 
pound for the period January 1 through December 31, 2015, and to $0.015 
per pound on and after January 1, 2016. Additional funds would enable 
the Board to expand its production research activities and promotional 
efforts. Since the program's inception, the Board has funded several 
production research projects focused on maintaining the health of honey 
bee colonies. The honey industry continues to experience considerable 
production challenges associated with the Colony Collapse Disorder. The 
honey industry has attempted to halt the long term decline in the 
numbers of honeybees (over 30 percent in the past twenty years) through 
treatment, colony development, maintenance, and replacement. The funds 
generated by an assessment increase would be spent on conducting 
research activities designed to address these critical issues. Per 
section 1212.50(a) of the Order, five percent (5 percent) of the 
Board's anticipated revenue from assessments each fiscal period is to 
be allocated towards production research and research related to the 
production of honey. A possible one to two million dollar increase in 
assessment revenue would generate an additional $50,000 to $100,000 for 
production research. Furthermore, the Board also conducts research 
relating to various health and beauty issues, including alternative 
uses for honey. However, most of these preliminary findings have been 
done under laboratory conditions. Additional funds would allow the 
Board to incorporate specific areas of research into expanded clinical 
(human) trials. Clinical trials are important for the industry to be 
able to make health claims consistent with Federal Trade Commission and 
Food and Drug Administration requirements.
    The Board uses health information in its promotion messaging to 
help build demand for honey and honey products. Worldwide honey 
production has grown from 357 million pounds in 2009 to 487 million 
pounds in 2013. Increasing demand would help move the growing supply of 
honey, which in turn would assist the Board in reaching its goal to 
continually increase consumption among existing honey and honey product 
consumers and to attract new honey and honey product users.
    At the proposed increased assessment rate on honey and honey 
products, with assessable pounds averaging 450 million per year, 
assessment income could reach $5.6 million in 2015 and $6.8 million in 
2016. This increase could be used for research and promotion projects 
designed to maintain and expand the market for honey and honey products 
in the United States and abroad. As an example, if 5 percent of the 
budget was allocated to production research and 60 percent was 
allocated to promotion, funds available for production research could 
average approximately $340,000 annually, up from $231,234 in 2013, and 
funds available for health messaging and promotion could average $4 
million annually, up from $2.8 million in 2013.
    In light of the need to allocate more funds towards production and 
health research activities and build demand for honey, the Board 
recommended increasing the assessment rate under the Order from $0.01 
to $0.015 per pound on honey and honey products over a two-year period. 
The Order limits an increase in the assessment rate to no more than 
one-quarter cent per year. Thus, the rate would increase to $0.0125 per 
pound for the period January 1 through December 31, 2015, and to $0.015 
per pound on and after January

[[Page 68638]]

1, 2016. Section 1212.52 of the Order is proposed to be amended 
accordingly. Paragraph (e) of section 1212.52 would also be revised to 
clarify that the assessment rate applies not only to the listed 
Harmonized Tariff Schedule of the United States (HTSUS) numbers, but 
also any other numbers that may be used to identify honey or honey 
products in the event the HTSUS numbers change; this change has no 
impact on the assessment rate.
    The Board also proposed changes for two additional sections of the 
Order. Section 1212.71 of the Order would be revised to change the 
length of time that books and records are to be held from two years to 
three years. This change is proposed to conform with the Board's 
compliance procedures, which provides that the Board conduct audit 
reviews every three years. Section 1212.53 of the Order would be 
revised to state that exemptions from assessments for a calendar year 
are effective on the date approved by the Board. This change is being 
made to clarify exemption requirements. These changes will pose no 
additional information collection burden on honey first handlers and 
importers.

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.
    There are 661 importers and 42 first handlers of honey and honey 
products covered under the program. Seventeen out of the 42 first 
handlers (40 percent) and 21 out of the 661 importers (3 percent) 
accounted for 90 percent of the assessments in their respective 
categories. Total assessments for 2013 were $4.44 million, of which 
$1.12 million (25 percent) came from first handlers and $3.32 million 
(75 percent) was paid by importers. Dividing the honey production value 
for 2013 reported by the National Agricultural Statistics Service 
(NASS) of $317,087,000 \1\ by the number of first handlers (42) yields 
an average annual producer revenue estimate of $7,549,690. It is 
estimated that in 2013, about 60 percent of the first handlers handled 
less than $7 million worth of honey and honey products. Based on 2013 
Customs data, it is estimated that 90 percent of the importers shipped 
more than $7 million worth of honey and honey products.
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    \1\ Honey, March 2014, USDA, National Agricultural Statistics 
Service, p. 3.
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    This data can be used to compute an estimate of average annual 
revenue from honey sales from each of these categories, which in turn 
helps to estimate the number of large and small first handlers and 
importers. As mentioned above, 17 first handlers account for 90 percent 
of the domestic assessments. Multiplying first handler assessments of 
$1,122,390 by 0.9 and then dividing by 17 yields an average annual 
assessment of $59,421 for the first handlers in this category. With an 
assessment rate of one cent per pound, average quantity per first 
handler is 5.942 million pounds. Multiplying 5.942 million pounds by 
the NASS average 2013 U.S. domestic price of $2.12 per pound yields an 
average, annual honey revenue per packer of $12.60 million, which is 
well above the SBA threshold of $7 million. Therefore most of the 17 
first handlers that pay 90 percent of the domestic assessments are 
likely to be large firms according to the SBA definition.
    An equivalent computation can be made for the 21 importers who paid 
90 percent of the $3,321,408 in assessments in 2013. Of the 21 
importers, the average assessment per importer was $142,346 and the 
average quantity was 14.235 million. For honey imports, the equivalent 
of the season average price for domestic honey is referred to as a 
``unit value.'' The unit value of $1.42 per pound is computed by 
dividing annual imported honey value of $480.25 million pounds by 
average quantity of 337.05 million pounds (import data from the U.S. 
Census Bureau). Multiplying the $1.42 unit value by the average 
quantity of 14.235 million pounds yields average annual honey revenue 
per importer figure of $20.21 million, nearly three times the SBA 
threshold figure of $7 million for a large firm. Therefore the majority 
of the 21 importers that pay 90 percent of the assessments are large 
firms, according to the SBA definition.
    Comparable computations can be made to determine the average 2013 
honey revenue for the 25 first handlers and 640 importers that paid 10 
percent of the assessments in the first handler and importer 
categories. The first handler and importer average annual honey revenue 
figures are approximately $960,000 and $75,000, respectively, 
indicating that the vast majority are small businesses (in terms of 
honey sales), under the SBA large business threshold of $7 million in 
annual sales.
    Based on the foregoing, the majority of first handlers and 
importers may be classified as small entities.
    This proposed rule invites comments on amending section 1212.52 of 
the Order to increase the assessment rate from $0.01 to $0.015 per 
pound (an increase of $0.0025 per pound over a two year period). The 
Order is administered by the Board with oversight by USDA. Under the 
program, assessments are collected from first handlers and importers 
and used for research and promotion projects designed to maintain and 
expand the market for honey and honey products in the United States and 
abroad. Additional funds would enable the Board to expand its 
production research activities and promotional efforts. The Board uses 
its health information in its promotion messaging to help build demand. 
Increasing demand would help move the growing supply of honey and honey 
products, which would benefit producers, importers, first handlers, and 
consumers. Authority for this action is provided in section 1212.52(f) 
of the Order and section 517 of the 1996 Act.
    The Board also proposed changes for two additional sections of the 
Order. Section 1212.71 of the Order would be revised to change the 
length of time that books and records are to be held from two years to 
three years. This change is proposed to conform with the Board's 
compliance procedures, which instructs the Board to conduct audit 
reviews every three years. Section 1212.53 of the Order would be 
revised to state that exemptions from assessments for a calendar year 
are effective on the date approved by the Board. This change is being 
made to clarify exemption requirements. These changes pose no 
additional information collection burden on honey first handlers and 
importers.
    Regarding the economic impact of the proposed rule on affected 
entities, this action would increase the assessment obligation on first 
handlers and importers. While assessments impose additional costs on 
first handlers and importers, the costs are minimal and uniform on all. 
The costs would also be offset by the benefits derived from the 
operation of the program. It is estimated

[[Page 68639]]

that 42 first handlers and 661 importers pay assessments under the 
program.
    There has been one economic study conducted since the Order's 
inception that evaluated the effectiveness of the Board's promotion 
program. The study was conducted by Dr. Ronald M. Ward at the 
University of Florida in 2014 and titled ``Honey Demand and the Impact 
of the National Honey Board's Generic Promotion Program.'' This study 
may be obtained from https://www.ams.usda.gov/. The 2014 study included 
data from 1987 through 2012, and evaluated the effectiveness of the 
former Honey Research, Promotion, and Consumer Information Order, and 
the current honey marketing program. The earlier honey program operated 
from 1986 through 2008, as a producer program. The earlier program was 
replaced in 2008 with the current packer and importer program; 
producers are no longer directly subject to the mandatory assessment. 
Otherwise, the two programs are similar, including the administrative 
and operational oversight.
    The purpose of the economic study was twofold: (1) To determine the 
market implications of the Board's promotion program and (2) to 
determine a return-on-investment (rate of return) for the promotion 
activities conducted by the Board.
    To evaluate the effectiveness of the Board's domestic promotion 
activities, econometric models were developed for each of two distinct 
honey market segments: Manufacturing (honey used as an ingredient) and 
non-manufacturing (table honey). The models measured the impact of the 
Board's annual promotion expenditures while taking into account the 
impact of other factors that influence demand.
    For the non-manufacturing model, the other factors were domestic 
supplies of honey, personal income, and the historical support price 
for honey. For the manufacturing model, the other factors were the 
quantity of sugar used in food manufacturing (as a proxy measure of the 
overall demand for sweeteners, including honey), and a variable which 
captured the structural change in the honey market that began in 2007, 
when the market share of honey imports began to increase significantly. 
The manufacturing model using Board expenditure lagged one year because 
Board promotion expenditure in the prior year was found to have the 
most significant impact on honey manufacturing demand in the current 
year.
    Due to differences in data availability, the manufacturing model 
covered the time period of 1965 through 2012 and the non-manufacturing 
model spanned 1987 through 2012.
    The econometric models used statistical methods to analyze annual 
data over these time periods and measure how strongly the various honey 
demand factors affect (a) the quantity of honey as an ingredient 
(manufacturing model) and (b) the price for table honey (non-
manufacturing model). In both models, Board program expenditures were 
found to have a positive and statistically significant impact on 
demand. The models had reasonably strong explanatory power, with 80 
percent of the variation in quantity demanded explained by the 
independent variables in the manufacturing model, and 89 percent of the 
variation in price explained by the non-manufacturing model variables.
    The return on investment (ROI) for honey promotion was obtained by 
dividing the increased value of honey sales (for the two market 
segments combined) by Board program expenditures. The ROI for Board 
programs for the period 1987 to 2012 was 14.12, meaning $14.12 in 
returns (increased honey value) for every $1 spent on promotion. The 
results were similar for 2008 through 2012, the period covered by the 
new program funded by honey first handlers and importers.
    An additional step in assessing promotional program effectiveness 
was to analyze the potential impact of alternative honey promotion 
spending levels. The two demand models were used to simulate gains for 
various percentages of actual 2012 promotional expenditures. The 
results show a range of increased honey demand impacts from increased 
spending, depending on alternative assumptions about the level of honey 
price and honey quantity. The simulation results suggest that a 50 
percent increase in Board promotional expenditure would yield an 
additional $29 million in honey sales, if quantity demanded increased, 
but prices stayed the same. Alternatively, crop value would increase 
$44 million if prices went up but quantity stayed the same. Returns on 
investment were 14 or higher over this range of alternative assumptions 
about market conditions. These results were similar to the ROI cited 
earlier. Focusing on 2012 illustrates the effectiveness of the program 
under the funding mechanism that began in 2008.
    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 previously 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 honey first handlers and importers.
    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.
    The Board has been considering an increase in the assessment rate 
since 2011. The Board explored the need and justification for an 
increase as well as obtained feedback from the Board's stakeholders. 
Additionally, beginning 2011, the Board has done extensive outreach to 
include presentations, handouts, and industry meeting attendance. As an 
alternative to an assessment rate increase, the Board considered 
cutting programs. The Board reduced honey research in order to maintain 
marketing programs and considered cutting additional marketing 
programs. However, after further analysis, it was determined that 
additional cuts would hurt the program. Late 2013, the Board presented 
the proposed assessment increase to the various honey associations. 
Ultimately, at its January 2014 meeting, the Board unanimously 
recommended increasing the assessment rate to $0.0125 per pound for the 
first year (January 1 through December 31, 2015) and to $0.015 per 
pound for the second year and beyond (on and after January 1, 2016).
    While USDA has performed this initial RFA analysis regarding the 
impact of the proposed rule on small entities, in order to have as much 
data as possible for a more comprehensive analysis, we invite comments 
concerning potential effects. USDA is also requesting comments 
regarding the number and size of entities covered under the proposed 
Order.
    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.

[[Page 68640]]

    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate because 
this action needs to be in place as soon as possible so the Board can 
begin to collect the additional funds for research and promotional 
activities designed to maintain and expand the market for honey and 
honey products in the United States and abroad. 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 1212

    Administrative practice and procedure, Advertising, Consumer 
information, Honey Packer and Importer promotion, Marketing agreements, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, Part 1212, Chapter XI of 
Title 7 is proposed to be amended as follows:

PART 1212--HONEY PACKERS AND IMPORTERS RESEARCH, PROMOTION, 
CONSUMER EDUCATION AND INDUSTRY INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1212 continues to read as 
follows:

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.

0
2. In Sec.  1212.52, paragraphs (a), (b), (c), (d) and (e) are revised 
to read as follows:


Sec.  1212.52  Assessments.

    (a) The Board will cover its expenses by levying in a manner 
prescribed by the Secretary an assessment on first handlers and 
importers. For the period January 1 through December 31, 2015, the 
assessment rate shall be $0.0125 per pound of assessable honey and 
honey products. On and after January 1, 2016, the assessment rate shall 
be $0.015 per pound of assessable honey and honey products.
    (b) Each first handler shall pay the assessment to the Board on all 
domestically produced honey or honey products the first handler 
handles. A producer shall pay the Board the assessment on all honey or 
honey products for which the producer is the first handler.
    (c) Each first handler responsible for remitting assessments shall 
remit the amounts due to the Board's office on a monthly basis no later 
than the fifteenth day of the month following the month in which the 
honey or honey products were marketed.
    (d) Each importer shall pay an assessment to the Board on all honey 
or honey products the importer imports into the United States. An 
importer shall pay the assessment to the Board through the United 
States Customs and Border Protection (Customs) when the honey or honey 
products being assessed enters the United States. If Customs does not 
collect an assessment from an importer, the importer is responsible for 
paying the assessment to the Board.
    (e) The import assessment recommended by the Board and approved by 
the Secretary shall be uniformly applied to imported honey or honey 
products that are identified as HTS heading numbers 0409.00.00 and 
2106.90.9988 by the Harmonized Tariff Schedule of the United States or 
any other numbers used to identify honey or honey products.
* * * * *
0
3. In Sec.  1212.53, paragraph (d) is revised to read as follows:


Sec.  1212.53  Exemption from assessment.

* * * * *
    (d) Upon receipt of an application, the Board shall determine 
whether an exemption may be granted. The Board will then issue, if 
deemed appropriate, a certificate of exemption to each person who is 
eligible to receive one. The exemption is effective when approved by 
the Board. It is the responsibility of these persons to retain a copy 
of the certificate of exemption.
* * * * *
0
4. Section 1212.71 is revised to read as follows:


Sec.  1212.71  Books and records.

    Each first handler and importer, including those who are exempt 
under this subpart, must maintain any books and records necessary to 
carry out the provisions of this part, and any regulations issued under 
this part, including the books and records necessary to verify any 
required reports. Books and records must be made available during 
normal business hours for inspection by the Board's or Secretary's 
employees or agents. A first handler or importer must maintain the 
books and records for three years beyond the fiscal period to which 
they apply.

    Dated: November 13, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014-27253 Filed 11-17-14; 8:45 am]
BILLING CODE 3410-02-P