Christmas Tree Promotion, Research, and Information Order; Late Payment and Interest Charges on Past Due Assessments, 38894-38897 [2016-14150]
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38894
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
As amended, the Cotton Research and
Promotion Order (7 CFR part 1205)
(Order) was approved by producers and
importers voting in a referendum held
July 17–26, 1991, and the amended
Order was published in the Federal
Register on December 10, 1991, (56 FR
64470). A proposed rule implementing
the amended Order was published in
the Federal Register on December 17,
1991, (56 FR 65450). Implementing
rules were published on July 1 and 2,
1992, (57 FR 29181 and 57 FR 29431,
respectively).
The total value of assessment levied
on cotton imports is the sum of two
parts. The first part of the assessment is
based on the weight of cotton
imported—levied at a rate of $1 per bale
of cotton, which is equivalent to 500
pounds, or $1 per 226.8 kilograms of
cotton. The second part of the import
assessment (referred to as the
supplemental assessment) is based on
the value of imported cotton lint or the
cotton contained in imported cotton
products—levied at a rate of five-tenths
of one percent of the value of
domestically produced cotton. The
current assessment on imported cotton
is $0.012013 per kilogram of imported
cotton.
The Act provides that ‘‘Any de
minimis figure as established under this
paragraph shall be such as to minimize
the burden in administering the
assessment provision but still provide
for the maximum participation of
imports of cotton in the assessment
provisions of this chapter.’’ 7 U.S.C.
2116(c)(2). The Import Assessment
Table in paragraph (b)(3) of § 1205.510
of the Cotton Research and Promotion
Rules and Regulations indicates the
total assessment rate ($ per kilogram)
due for each Harmonized Tariff
Schedule (HTS) number that is subject
to assessment. Subparagraph (i) of this
same paragraph provides for an
exemption from assessment for any line
item entry of cotton appearing on U.S.
Customs and Border Protection (CBP)
entry documentation whose calculated
assessment is two dollars ($2.00) or less.
This de minimis exemption was
established to minimize the
administrative burden of collecting
import assessments, which was
originally estimated to be $2.00 per line
item, where administrative costs would
exceed the actual value of the
assessment.
The de minimis figure is an estimate
of administrative burden, which is
equivalent to the transactions costs of
collecting the cotton fee. The de
minimis provision was necessary to
avoid instances where the transactions
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costs of collecting the cotton fee
exceeded the cotton fee being collected.
In January 2014, AMS became aware
of CBP’s automation processes in
connection with documenting and
collecting assessments. CBP indicated
that the documentation and collection
process is automated and costs have
been significantly decreased. Taking
into account technological
advancements in the fee collection
process, CBP no longer charges USDA
for the collection of assessments on
agricultural commodities. This has
eliminated the administrative burden
associated with the collection of
assessments.
AMS is striking subparagraph (i)
under paragraph § 1205.510(b)(3) of the
Cotton Research and Promotion Rules
and Regulations and appending to the
paragraph section the language
currently in subparagraph (ii). This
action reflects the technological
efficiencies of the CBP import
documentation process by eliminating
the de minimis provisions in the
regulations, and, therefore, helps to
ensure that the assessments collected on
imported cotton and the cotton content
of imported products will be the same
as those paid on domestically produced
cotton. In addition, AMS is modifying
the definition of cotton in § 1205.12 to
include imported cotton that previously
was exempted due to the de minimis
exemption. With this action, importers
who previously imported de minimis
amounts of cotton may now be eligible
to participate in the sign-up period for
a continuance referendum that would
determine whether a continuance
referendum is favored.
Summary of Comments
■
2. Revise § 1205.12 to read as follows:
§ 1205.12
Cotton.
The term cotton means all Upland
cotton harvested in the United States
and all imports of Upland cotton,
including the Upland cotton content of
products derived thereof.
■ 3. In § 1205.510, paragraph (b)(3) is
revised to read as set forth below (the
Import Assessment Table remains
unchanged):
§ 1205.510
Levy of assessments.
*
*
*
*
*
(b) * * *
(3) The following table contains
Harmonized Tariff Schedule (HTS)
classification numbers and
corresponding conversion factors and
assessments. The left column of the
following table indicates the HTS
classifications of imported cotton and
cotton-containing products subject to
assessment. The center column
indicates the conversion factor for
determining the raw fiber content for
each kilogram of the HTS. HTS numbers
for raw cotton have no conversion factor
in the table. The right column indicates
the total assessment per kilogram of the
article assessed. In the event that any
HTS number subject to assessment is
changed and such change is merely a
replacement of a previous number and
has no impact on the physical
properties, description, or cotton
content of the product involved,
assessments will continue to be
collected based on the new number.
*
*
*
*
*
Dated: June 10, 2016.
Elanor Starmer,
Administrator.
A proposed rule was published in the
Federal Register on December 16, 2014,
with a comment period of December 11,
2015, through January 11, 2016 (80 FR
76873). No comments were received by
AMS. The proposed rule may be viewed
at www.regulations.gov.
[FR Doc. 2016–14174 Filed 6–14–16; 8:45 am]
List of Subjects in 7 CFR Part 1205
7 CFR Part 1214
Advertising, Agricultural research,
Cotton, Marketing agreements,
Reporting and Recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 1205 is amended
as follows:
[Document Number AMS–SC–15–0072]
PART 1205—COTTON RESEARCH
AND PROMOTION
1. The authority citation for part 1205
continues to read as follows:
■
Authority: 7 U.S.C. 2101–2118.
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BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
Christmas Tree Promotion, Research,
and Information Order; Late Payment
and Interest Charges on Past Due
Assessments
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule prescribes late
payment and interest charges on past
due assessments under the Christmas
Tree Promotion, Research, and
SUMMARY:
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Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
Information Order (Order). The Order is
administered by the Christmas Tree
Promotion Board (Board) 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 fresh cut
Christmas trees. This rule implements
authority contained in the Order that
allows the Board to collect late payment
and interest charges on past due
assessments. Late payment and interest
charges will begin to accrue on unpaid
assessments beginning 30 days after the
effective date of this rule. This action
contributes to effective administration
of the program. This rule also provides
authority for the crop year and fiscal
period to be changed through
administrative action. These changes
were unanimously recommended by the
Board.
DATES: Effective June 16, 2016.
FOR FURTHER INFORMATION CONTACT:
Victoria Carpenter, Marketing
Specialist, Promotion and Economics
Division, Specialty Crops Program,
AMS, USDA, Stop 0244, 1400
Independence Avenue SW., Room
1406–S, Washington, DC 20250–0244;
telephone: (202) 720–9915; facsimile:
(202) 205–2800; or electronic mail:
VictoriaM.Carpenter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under the Order (7 CFR part
1214). The Order is authorized under
the Commodity Promotion, Research,
and Information Act of 1996 (1996
Act)(7 U.S.C. 7411–7425).
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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
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and Coordination with Indian Tribal
Governments. The review reveals that
this regulation will not have substantial
and direct effects on Tribal governments
and will not have significant Tribal
implications.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. Section 524 of the
1996 Act provides that it shall not affect
or preempt any other Federal or State
law authorizing promotion or research
relating to an agricultural commodity.
Under section 519 of the 1996 Act (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 rule prescribes late payment and
interest charges on past due
assessments. The Order is administered
by the Board 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 the market for fresh cut
Christmas trees. This rule implements
authority contained in the Order and the
1996 Act that allows the Board to collect
late payment and interest charges on
past due assessments. This action was
unanimously recommended by the
Board and will contribute to effective
administration of the program.
Section 1214.52(a) of the Order
specifies that the funds to cover the
Board’s expenses shall be paid from
assessments on producers and
importers, donations from persons not
subject to assessments, and from other
funds available to the Board. Paragraphs
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38895
(b) and (c) specify that the collection of
assessments on Christmas trees that are
cut and sold or imported will be the
responsibility of the producer who
produces the Christmas trees or causes
them to be cut, or the importer who
imports Christmas trees for marketing in
the United States.
Section 1214.52(e) specifies that ‘‘a
late payment charge, may be imposed
on any producer or importer who fails
to remit to the Board, the total amount
for which any such producer or
importer is liable on or before the due
date established by the Board. In
addition to the late payment charge, an
interest charge may be imposed on the
outstanding amount for which the
producer or importer is liable. The rate
for late payment and interest charges
shall be specified by the Secretary
through rulemaking.’’
The Order was implemented in
November 2011, but immediately
stayed. The stay was lifted on April 7,
2014, and the program is currently in
effect. Domestic assessments were due
February 15, 2016. This will be the first
assessment collection by the Board.
Importers will be responsible for paying
the assessment directly to the Board 30
calendar days after importation. U.S.
Customs and Border Protection
(Customs) will not be collecting on
imports for the 2015 season. Producers
or importers who domestically produce
or import less than 500 trees annually
are exempt from assessment.
This rule implements authority
contained in the Order and the 1996 Act
that allows the Board to collect late
payment and interest charges on past
due assessments.
Late payment and interest charges
will begin to accrue on unpaid
assessments beginning 30 days after the
effective date of the final rule. A late
payment charge of $250 will be applied
to any unpaid assessments for producers
and importers that are delinquent in
paying their assessment. If the
assessment is paid after February 15, but
up to 29 days after the effective date of
this final rule, no late payment charge
will be imposed. The late payment
charge will be increased to $500 after 90
days after the effective date of this final
rule. Additionally, a 1.5 percent interest
charge per month will be imposed on
unpaid assessments and fees owed,
beginning 30 days after the effective
date of this final rule. The delay of the
imposition of late payment and interest
charges only applies to the initial period
of assessment collection. Assessment
funds are used by the Board for
activities designed to benefit all
industry members. Thus, it is important
that all assessed entities pay their
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Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
assessments in a timely manner. Entities
who fail to pay their assessments on
time would be able to reap the benefits
of Board 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 Board
to finance Board programs.
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Board Recommendation
The Board met on July 17, 2015, and
unanimously recommended specifying
rates of late payment charges and
interest on past due assessments in the
Order’s regulations. Specifically, the
Board recommended that a late payment
charge of $250 be applied to late
assessments for producers and
importers that are delinquent in paying
their assessment 30 days after the due
date. The late payment charge will
increase to $500 after 90 days of
delinquency. Additionally, a 1.5 percent
interest charge per month will be
imposed on late assessments and fees
owed, beginning 30 days after the
assessment due date. This fee structure
is not overtly burdensome on small
producers or importers, but does create
the incentive to promote timely
payment of assessments due. This
action contributes to the efficient
administration of the program.
This action will 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 is added
to the Order for rules and regulations,
and a new section 1214.520 is added to
Subpart C.
This rule also makes one additional
change to the Order. This rule revises
the definition of crop year and fiscal
period as defined in sections 1214.5 and
1214.8, respectively. The Board
recommended this change because
USDA revised the crop year and fiscal
period during the promulgation process
from what was originally proposed by
the industry. The Board wants the
flexibility to change these dates if
necessary. The terms crop year and
fiscal period will be revised by adding
language to allow the Board to change
the crop year or fiscal period
administratively through Board action.
Final Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–
612), AMS is required to examine the
impact of this rule on small entities.
Accordingly, AMS has considered the
economic impact of this action on such
entities.
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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 (SBA) 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
(producers and importers) as those
having annual receipts of no more than
$7.5 million.
According to the 2012 Census of
Agriculture published by the National
Agricultural Statistics Service (NASS), it
is estimated that there are 15,494 farms
that sold cut Christmas trees in the
United States. According to NASS, the
value of cut Christmas trees sold in 2012
was $808,644,000. Dividing that value
by the number of farms yields an
average annual producer revenue of
$52,191. Therefore it is estimated that
all farms that sold Christmas trees had
revenue under $750,000.
Likewise, based on Customs data, it is
estimated there are 153 importers of
Christmas trees. Using 2014 Customs
data, all importers import less than $7.5
million worth of Christmas trees
annually. Thus, all domestic producers
and importers of Christmas trees would
be considered small entities.
Regarding the value of the
commodity, as mentioned above, based
on 2012 NASS Census of Agriculture
data, the value of the domestic cut
Christmas trees was about $808.6
million. According to Customs data, the
value of 2014 imports was about $25.8
million.
This rule prescribes late payment and
interest charges on past due assessments
under the Order. The Order is
administered by the Board with
oversight by USDA. Under the Order,
assessments are collected from
producers and importers of Christmas
trees that are cut and sold or imported.
This rule will add a new section
1214.520 that will specify a late
payment charge of $250 to be applied to
late assessments for producers and
importers that are delinquent in paying
their assessment 30 days after the due
date. The late payment charge will be
increased to $500 after 90 days of
delinquency. Additionally, a 1.5 percent
interest charge per month will be
imposed on late assessments and fees
owed, beginning 30 days after the
assessment due date. This section will
be included in a new Subpart C—
Provisions Implementing the Christmas
Tree Promotion, Research, and
Information Order. This action was
unanimously recommended by the
Board and is authorized under section
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1214.52(e) of the Order and section
517(e) of the 1996 Act.
In addition, one other change is being
made to the Order. It will revise the
definition of crop year and fiscal period
as defined in sections 1214.5 and
1214.8, respectively. The Board
recommended this change because
USDA revised the crop year and fiscal
period during the promulgation process
from what was originally proposed by
the industry. The Board wants the
flexibility to change these dates if
necessary. The terms crop year and
fiscal period will be revised by adding
language to allow the Board to change
the crop year or fiscal period
administratively through Board action.
Regarding the economic impact of this
rule on affected entities, this action
imposes no costs on producers and
importers who pay their assessments on
time. It merely provides 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 will be
applied uniformly. As for the impact on
the industry as a whole, this action will
help facilitate program administration
by 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 500 Christmas trees.
Regarding alternatives, one option to
the action is to maintain the status quo
and not prescribe late payment and
interest charges for past due
assessments. However, the Board
determined that implementing such
charges would help facilitate program
administration by encouraging entities
to pay their assessments in a timely
manner. The Board reviewed rates of
late payment and interest charges
prescribed in other research and
promotion programs and concluded that
the late payment charge and the interest
charge contained in this rule are
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 rule results in no
changes to the information collection
and recordkeeping requirements
previously approved and imposes no
additional reporting and recordkeeping
burden on domestic producers and
importers of Christmas trees.
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As with all Federal promotion
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. Finally, USDA has not
identified any relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
Regarding outreach efforts, the Board
met on July 17, 2015, and unanimously
recommended these changes to the
Order. All of the Board’s meetings,
including meetings held via
teleconference, are open to the public
and interested persons are invited to
participate and express their views.
A proposed rule concerning this
action was published in the Federal
Register on March 1, 2016 (81 FR
10530). The proposal was made
available through the Internet by USDA
and the Office of the Federal Register. A
15-day comment period ending March
16, 2016, was provided to allow
interested persons to submit comments.
No comments were received.
After consideration of all relevant
matters presented, including the
information and recommendation
submitted by the Board and other
available information, it is hereby found
that this rule, as hereinafter set forth, is
consistent with and will effectuate the
purposes of the 1996 Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C. 553) because this is the initial
year for the collection of assessments
under the Order, on the 2015 harvest,
and assessments were due on February
15, 2016. Importers are responsible for
paying assessments directly to the Board
30 calendar days after importation. The
Board would like to implement this
incentive as soon as possible to facilitate
the initial collection of assessments.
Additionally, this action was
unanimously recommended by the
Board. Further, a 15-day comment
period was provided for in the proposed
rule and no comments were received.
List of Subjects in 7 CFR Part 1214
Administrative practice and
procedure, Advertising, Consumer
information, Christmas trees, Marketing
agreements, Reporting and
recordkeeping requirements.
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For the reasons set forth in the
preamble, 7 CFR part 1214 is amended
as follows:
DEPARTMENT OF TRANSPORTATION
PART 1214—CHRISTMAS TREE
PROMOTION, RESEARCH, AND
INFORMATION ORDER
14 CFR Part 39
Federal Aviation Administration
[Docket No. FAA–2015–3635; Directorate
Identifier 2015–NM–037–AD; Amendment
39–18553; AD 2016–12–04]
1. The authority citation for 7 CFR
part 1214 continues to read as follows:
RIN 2120–AA64
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
Airworthiness Directives; Airbus
Airplanes
2. Section 1214.5 is revised to read as
follows:
AGENCY:
■
■
§ 1214.5
Crop year.
Crop year means the period August 1
through July 31 or such other period
approved by the Secretary.
3. Section 1214.8 is revised to read as
follows:
■
§ 1214.8
Fiscal period.
Fiscal period means the period
August 1 through July 31 or such other
period approved by the Secretary.
4. Subpart C, consisting of § 1214.520,
is added to read as follows:
■
Subpart C—Provisions Implementing
the Christmas Tree Promotion,
Research, and Information Order
§ 1214.520 Late payment and interest
charges for past due assessments.
(a) A late payment charge shall be
imposed on any producer or importer
who fails to make timely remittance to
the Board of the total assessments for
which such producer or importer is
liable. The late payment charge 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 $250 and will
be increased to $500 after 90 days of
delinquency.
(b) In addition to the late payment
charge, 1.5 percent per month interest
on the outstanding balance, including
any late payment charge and accrued
interest, will be added to any accounts
for which payment has not been
received by the Board 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
Board.
Dated: June 10, 2016.
Elanor Starmer,
Administrator.
[FR Doc. 2016–14150 Filed 6–14–16; 8:45 am]
BILLING CODE P
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Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
We are adopting a new
airworthiness directive (AD) for all
Airbus Model A318 series airplanes;
A319 series airplanes; A320–211, –212,
–214, –231, –232, and –233 airplanes;
and A321 series airplanes. This AD was
prompted by an evaluation by the
design approval holder (DAH)
indicating that certain structural repair
manual (SRM) inspection requirements
for the fuselage skin repairs are
insufficient to detect cracks. This AD
requires an inspection to determine
whether any fuselage external skin
(doubler) repairs have been
accomplished, an inspection for
cracking of certain repaired external
fuselage skin areas in the fuselage, and
repair if necessary. We are issuing this
AD to detect and correct fatigue
cracking of the fuselage skin, which
could result in reduced structural
integrity of the airplane.
DATES: This AD becomes effective July
20, 2016.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of July 20, 2016.
ADDRESSES: For service information
identified in this final rule, contact
Airbus, Airworthiness Office—EIAS, 1
Rond Point Maurice Bellonte, 31707
Blagnac Cedex, France; telephone +33 5
61 93 36 96; fax +33 5 61 93 44 51; email
account.airworth-eas@airbus.com;
Internet https://www.airbus.com. You
may view this referenced service
information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue
SW., Renton, WA. For information on
the availability of this material at the
FAA, call 425–227–1221. It is also
available on the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2015–
3635.
SUMMARY:
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
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]]>Agencies
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38894-38897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14150]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1214
[Document Number AMS-SC-15-0072]
Christmas Tree Promotion, Research, and Information Order; Late
Payment and Interest Charges on Past Due Assessments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule prescribes late payment and interest charges on past
due assessments under the Christmas Tree Promotion, Research, and
[[Page 38895]]
Information Order (Order). The Order is administered by the Christmas
Tree Promotion Board (Board) 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 fresh cut
Christmas trees. This rule implements authority contained in the Order
that allows the Board to collect late payment and interest charges on
past due assessments. Late payment and interest charges will begin to
accrue on unpaid assessments beginning 30 days after the effective date
of this rule. This action contributes to effective administration of
the program. This rule also provides authority for the crop year and
fiscal period to be changed through administrative action. These
changes were unanimously recommended by the Board.
DATES: Effective June 16, 2016.
FOR FURTHER INFORMATION CONTACT: Victoria Carpenter, Marketing
Specialist, Promotion and Economics Division, Specialty Crops Program,
AMS, USDA, Stop 0244, 1400 Independence Avenue SW., Room 1406-S,
Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile: (202)
205-2800; or electronic mail: VictoriaM.Carpenter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under the Order (7 CFR
part 1214). 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 will not
have substantial and direct effects on Tribal governments and will not
have significant Tribal implications.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. Section
524 of the 1996 Act provides that it shall not affect or preempt any
other Federal or State law authorizing promotion or research relating
to an agricultural commodity.
Under section 519 of the 1996 Act (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 rule prescribes late payment and interest charges on past due
assessments. The Order is administered by the Board 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 the market for fresh cut Christmas
trees. This rule implements authority contained in the Order and the
1996 Act that allows the Board to collect late payment and interest
charges on past due assessments. This action was unanimously
recommended by the Board and will contribute to effective
administration of the program.
Section 1214.52(a) of the Order specifies that the funds to cover
the Board's expenses shall be paid from assessments on producers and
importers, donations from persons not subject to assessments, and from
other funds available to the Board. Paragraphs (b) and (c) specify that
the collection of assessments on Christmas trees that are cut and sold
or imported will be the responsibility of the producer who produces the
Christmas trees or causes them to be cut, or the importer who imports
Christmas trees for marketing in the United States.
Section 1214.52(e) specifies that ``a late payment charge, may be
imposed on any producer or importer who fails to remit to the Board,
the total amount for which any such producer or importer is liable on
or before the due date established by the Board. In addition to the
late payment charge, an interest charge may be imposed on the
outstanding amount for which the producer or importer is liable. The
rate for late payment and interest charges shall be specified by the
Secretary through rulemaking.''
The Order was implemented in November 2011, but immediately stayed.
The stay was lifted on April 7, 2014, and the program is currently in
effect. Domestic assessments were due February 15, 2016. This will be
the first assessment collection by the Board. Importers will be
responsible for paying the assessment directly to the Board 30 calendar
days after importation. U.S. Customs and Border Protection (Customs)
will not be collecting on imports for the 2015 season. Producers or
importers who domestically produce or import less than 500 trees
annually are exempt from assessment.
This rule implements authority contained in the Order and the 1996
Act that allows the Board to collect late payment and interest charges
on past due assessments.
Late payment and interest charges will begin to accrue on unpaid
assessments beginning 30 days after the effective date of the final
rule. A late payment charge of $250 will be applied to any unpaid
assessments for producers and importers that are delinquent in paying
their assessment. If the assessment is paid after February 15, but up
to 29 days after the effective date of this final rule, no late payment
charge will be imposed. The late payment charge will be increased to
$500 after 90 days after the effective date of this final rule.
Additionally, a 1.5 percent interest charge per month will be imposed
on unpaid assessments and fees owed, beginning 30 days after the
effective date of this final rule. The delay of the imposition of late
payment and interest charges only applies to the initial period of
assessment collection. Assessment funds are used by the Board for
activities designed to benefit all industry members. Thus, it is
important that all assessed entities pay their
[[Page 38896]]
assessments in a timely manner. Entities who fail to pay their
assessments on time would be able to reap the benefits of Board
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
Board to finance Board programs.
Board Recommendation
The Board met on July 17, 2015, and unanimously recommended
specifying rates of late payment charges and interest on past due
assessments in the Order's regulations. Specifically, the Board
recommended that a late payment charge of $250 be applied to late
assessments for producers and importers that are delinquent in paying
their assessment 30 days after the due date. The late payment charge
will increase to $500 after 90 days of delinquency. Additionally, a 1.5
percent interest charge per month will be imposed on late assessments
and fees owed, beginning 30 days after the assessment due date. This
fee structure is not overtly burdensome on small producers or
importers, but does create the incentive to promote timely payment of
assessments due. This action contributes to the efficient
administration of the program.
This action will 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 is added to the
Order for rules and regulations, and a new section 1214.520 is added to
Subpart C.
This rule also makes one additional change to the Order. This rule
revises the definition of crop year and fiscal period as defined in
sections 1214.5 and 1214.8, respectively. The Board recommended this
change because USDA revised the crop year and fiscal period during the
promulgation process from what was originally proposed by the industry.
The Board wants the flexibility to change these dates if necessary. The
terms crop year and fiscal period will be revised by adding language to
allow the Board to change the crop year or fiscal period
administratively through Board action.
Final Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of this rule on small
entities. Accordingly, AMS has considered the economic impact of this
action on such 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 (SBA)
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 (producers and importers) as those having annual receipts
of no more than $7.5 million.
According to the 2012 Census of Agriculture published by the
National Agricultural Statistics Service (NASS), it is estimated that
there are 15,494 farms that sold cut Christmas trees in the United
States. According to NASS, the value of cut Christmas trees sold in
2012 was $808,644,000. Dividing that value by the number of farms
yields an average annual producer revenue of $52,191. Therefore it is
estimated that all farms that sold Christmas trees had revenue under
$750,000.
Likewise, based on Customs data, it is estimated there are 153
importers of Christmas trees. Using 2014 Customs data, all importers
import less than $7.5 million worth of Christmas trees annually. Thus,
all domestic producers and importers of Christmas trees would be
considered small entities.
Regarding the value of the commodity, as mentioned above, based on
2012 NASS Census of Agriculture data, the value of the domestic cut
Christmas trees was about $808.6 million. According to Customs data,
the value of 2014 imports was about $25.8 million.
This rule prescribes late payment and interest charges on past due
assessments under the Order. The Order is administered by the Board
with oversight by USDA. Under the Order, assessments are collected from
producers and importers of Christmas trees that are cut and sold or
imported.
This rule will add a new section 1214.520 that will specify a late
payment charge of $250 to be applied to late assessments for producers
and importers that are delinquent in paying their assessment 30 days
after the due date. The late payment charge will be increased to $500
after 90 days of delinquency. Additionally, a 1.5 percent interest
charge per month will be imposed on late assessments and fees owed,
beginning 30 days after the assessment due date. This section will be
included in a new Subpart C--Provisions Implementing the Christmas Tree
Promotion, Research, and Information Order. This action was unanimously
recommended by the Board and is authorized under section 1214.52(e) of
the Order and section 517(e) of the 1996 Act.
In addition, one other change is being made to the Order. It will
revise the definition of crop year and fiscal period as defined in
sections 1214.5 and 1214.8, respectively. The Board recommended this
change because USDA revised the crop year and fiscal period during the
promulgation process from what was originally proposed by the industry.
The Board wants the flexibility to change these dates if necessary. The
terms crop year and fiscal period will be revised by adding language to
allow the Board to change the crop year or fiscal period
administratively through Board action.
Regarding the economic impact of this rule on affected entities,
this action imposes no costs on producers and importers who pay their
assessments on time. It merely provides 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
will be applied uniformly. As for the impact on the industry as a
whole, this action will help facilitate program administration by
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 500 Christmas
trees.
Regarding alternatives, one option to the action is to maintain the
status quo and not prescribe late payment and interest charges for past
due assessments. However, the Board determined that implementing such
charges would help facilitate program administration by encouraging
entities to pay their assessments in a timely manner. The Board
reviewed rates of late payment and interest charges prescribed in other
research and promotion programs and concluded that the late payment
charge and the interest charge contained in this rule are 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 rule results in no changes to the information
collection and recordkeeping requirements previously approved and
imposes no additional reporting and recordkeeping burden on domestic
producers and importers of Christmas trees.
[[Page 38897]]
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. Finally, USDA has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
Regarding outreach efforts, the Board met on July 17, 2015, and
unanimously recommended these changes to the Order. All of the Board's
meetings, including meetings held via teleconference, are open to the
public and interested persons are invited to participate and express
their views.
A proposed rule concerning this action was published in the Federal
Register on March 1, 2016 (81 FR 10530). The proposal was made
available through the Internet by USDA and the Office of the Federal
Register. A 15-day comment period ending March 16, 2016, was provided
to allow interested persons to submit comments. No comments were
received.
After consideration of all relevant matters presented, including
the information and recommendation submitted by the Board and other
available information, it is hereby found that this rule, as
hereinafter set forth, is consistent with and will effectuate the
purposes of the 1996 Act.
It is further found that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register (5 U.S.C. 553) because this is the initial year for
the collection of assessments under the Order, on the 2015 harvest, and
assessments were due on February 15, 2016. Importers are responsible
for paying assessments directly to the Board 30 calendar days after
importation. The Board would like to implement this incentive as soon
as possible to facilitate the initial collection of assessments.
Additionally, this action was unanimously recommended by the Board.
Further, a 15-day comment period was provided for in the proposed rule
and no comments were received.
List of Subjects in 7 CFR Part 1214
Administrative practice and procedure, Advertising, Consumer
information, Christmas trees, Marketing agreements, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1214 is
amended as follows:
PART 1214--CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION
ORDER
0
1. The authority citation for 7 CFR part 1214 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Section 1214.5 is revised to read as follows:
Sec. 1214.5 Crop year.
Crop year means the period August 1 through July 31 or such other
period approved by the Secretary.
0
3. Section 1214.8 is revised to read as follows:
Sec. 1214.8 Fiscal period.
Fiscal period means the period August 1 through July 31 or such
other period approved by the Secretary.
0
4. Subpart C, consisting of Sec. 1214.520, is added to read as
follows:
Subpart C--Provisions Implementing the Christmas Tree Promotion,
Research, and Information Order
Sec. 1214.520 Late payment and interest charges for past due
assessments.
(a) A late payment charge shall be imposed on any producer or
importer who fails to make timely remittance to the Board of the total
assessments for which such producer or importer is liable. The late
payment charge 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 $250 and will be increased to $500 after 90 days of
delinquency.
(b) In addition to the late payment charge, 1.5 percent per month
interest on the outstanding balance, including any late payment charge
and accrued interest, will be added to any accounts for which payment
has not been received by the Board 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 Board.
Dated: June 10, 2016.
Elanor Starmer,
Administrator.
[FR Doc. 2016-14150 Filed 6-14-16; 8:45 am]
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