Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; Assessment Rate Increase, 11387-11391 [2021-03467]
Download as PDF
11387
Rules and Regulations
Federal Register
Vol. 86, No. 36
Thursday, February 25, 2021
Agricultural Marketing Service
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 falls within a
category of regulatory actions that the
Office of Management and Budget
(OMB) exempted from Executive Order
12866 review.
7 CFR Part 1217
Executive Order 13175
[Document Number AMS–SC–20–0014]
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.
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF AGRICULTURE
Softwood Lumber Research,
Promotion, Consumer Education and
Industry Information Order;
Assessment Rate Increase
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule amends the
Softwood Lumber Research, Promotion,
Consumer Education and Industry
Information Order (Order) to increase
the assessment rate from $0.35 to $0.41
per thousand board feet (mbf). The
Order is administered by the Softwood
Lumber Board (Board) with oversight by
the U.S. Department of Agriculture
(USDA). This rule will also add the
conversion factor for square meters to
board feet and makes one conforming
change.
SUMMARY:
DATES:
Effective Date: April 1, 2021.
FOR FURTHER INFORMATION CONTACT:
Andrea Ricci, Marketing Specialist,
Promotion and Economics Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Room
1406–S, Stop 0244, Washington, DC
20250–0244; telephone: (202) 572–1442;
facsimile: (202) 205–2800; or electronic
mail: Andrea.Ricci@usda.gov.
SUPPLEMENTARY INFORMATION: This final
rule affecting 7 CFR part 1217 (herein
the ‘‘Order’’) is authorized under the
Commodity Promotion, Research, and
Information Act of 1996 (1996 Act) (7
U.S.C. 7411–7425).
Executive Orders 12866 and 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
VerDate Sep<11>2014
16:18 Feb 24, 2021
Jkt 253001
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 (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, must 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.
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
Background
This rule amends the Order by
increasing the assessment rate from
$0.35 to $0.41 per mbf of softwood
lumber shipped within or imported into
the United States. The Order is
administered by the Board with
oversight by the USDA. Under the
program, assessments are collected from
domestic manufacturers and importers
and used for research and promotion
projects designed to strengthen the
position of softwood lumber in the
marketplace. The additional funds will
enable the Board to maintain its existing
programs, while supporting new
programs that will help maintain and
expand markets for softwood lumber.
This rule will also add the conversion
factor for square meters to board feet
and make one conforming change.
The Order specifies that the funds to
cover the Board’s expenses shall be paid
by assessments on manufacturers for the
U.S. market, other income of the Board,
and other funds available to the Board.
Domestic manufacturers pay
assessments based on the volume of
softwood lumber shipped within the
United States and importers pay
assessments based on the volume of
softwood lumber imported to the United
States. Assessments are collected per
mbf of softwood lumber, except that no
entity shall pay an assessment on the
first 15 million board feet (mmbf) of
softwood lumber otherwise subject to
assessments in a fiscal year. Domestic
manufacturers are required to remit to
the Board assessments owed no later
than 30 calendar days of the month
following the end of the quarter in
which the softwood lumber was
shipped. Importers are responsible for
paying assessments to the Board on
softwood lumber imported into the
United States through the U.S. Customs
and Border Protection (CBP). If CBP
does not collect an assessment from the
importer, the importer is responsible for
paying the assessment to the Board no
later than 30 calendar days of the month
following the end of the quarter in
which the softwood lumber was
imported. Domestic manufacturers and
importers must also remit to the Board
required reports.
The Order also provides for
exemptions from assessments. Section
1217.53 specifies that U.S.
manufacturers and importers that
domestically ship and/or import less
E:\FR\FM\25FER1.SGM
25FER1
Federal Register / Vol. 86, No. 36 / Thursday, February 25, 2021 / Rules and Regulations
than 15 mmbf annually, exports of
softwood lumber from the United States,
and shipments and imports of organic
softwood lumber are exempt from the
Order’s assessment requirements.
Pursuant to § 1217.52, and subject to
the exemptions specified in § 1217.53,
each domestic manufacturer and
importer shall pay an assessment rate of
$0.35 per mbf of softwood lumber,
except that no entity shall pay an
assessment on the first 15 mmbf of
softwood lumber otherwise subject to
assessment in a fiscal year. The
assessment rate may not be less than
$0.35 per mbf nor more than $0.50 per
mbf. Section 1217.44(c) prescribes that
the Board may recommend to the
Secretary a change in the assessment
rate as it deems appropriate by at least
a majority of Board members plus two
(exclusive of vacant seats).
The $0.35 per mbf assessment rate has
been in effect since the program’s
inception in 2011. The Board’s fiscal
year runs from January 1 through
December 31. Board expenditures for
the five-year period from 2014–2018
have ranged from a low of $12.35
million in 2014 to a high of $15.32
million in 2016; expenditures in 2018
were $14.23 million. Program
expenditures averaged $12.96 million
during those five years, with annual
expenditures averaging $3.29 million
(24 percent) for research conducted on
wood standards; $4.06 million (29
percent) on a communications program,
which includes continuing education
courses for architects and engineers; and
$3.94 million (28 percent) on a
construction and design program that
provides technical support to architects
and structural engineers about using
wood. Pursuant to § 1217.50(h),
administrative expenditures have been
under 8 percent of the assessments
collected and other income received by
and available to the Board for the fiscal
year.
Board assessment income has ranged
from $12.55 million in 2014 to $13.74
million in 2018. About 70 percent of the
assessment income is from domestic
manufacturers and 30 percent is from
importers. Additionally, pursuant to
§ 1217.50(i), the Board maintains a
monetary reserve with funds that do not
exceed one fiscal period’s budget. This
rule will also amend § 1217.52(h) to add
the conversion factor for square meters
to board feet. Currently, the Order
provides a factor used to convert cubic
meters of imported softwood lumber
into the equivalent volume of thousands
of board feet, thus enabling the Board to
calculate appropriate assessments.
Softwood lumber is also being imported
in square meters. Adding a conversion
factor for square meters will better
reflect current industry practices and
facilitate the administration of the
program.
Finally, this rule will make a
conforming change to § 1217.52(c) to
reflect previously revised voting
requirements in § 1217.44. In a final rule
published in the Federal Register on
September 25, 2019 (84 FR 50294),
voting requirements prescribed in
§ 1217.44 were revised to specify that
recommendations to change the
assessment rate require affirmation by at
least a majority of Board members plus
two (exclusive of vacant seats).
Currently, corresponding language in
§ 1217.52(c) specifies that an affirmative
vote of at least two-thirds of Board
members is required for assessment rate
recommendations. A conforming change
in this rule will revise § 1217.52(c) to
require affirmation of assessment rate
recommendations by a Board majority
plus two, thus harmonizing the
language in the two sections related to
assessment recommendations.
Board Recommendation
The Board met on November 20, 2019,
and recommended increasing its
assessment rate from $0.35 to $0.41 per
mbf. The additional funds will enable
the Board to maintain its existing
programs, while supporting new
programs that will help maintain and
expand markets for softwood lumber.
For the 2016–2018 fiscal years, the
Board has used reserve funds to bridge
the deficit between income and
expenses. In 2019, the Board kept
expenditures in line with income and
had to make cuts to its programs,
primarily its communications program.
The Board discussed the deficit
spending that occurred from 2016–2018
and the funding cuts in 2019, along with
the impacts of inflation, and determined
that without the increase it would not
be able to maintain its current programs
nor be able to address gaps that limit the
Board’s ability to expand the market for
softwood lumber. Continuing at the
current funding level would limit its
ability to capitalize on new
opportunities or address challenges and
maintain the impact the Board has
achieved for the softwood lumber
industry in prior years. Additionally,
the current funding level restricts the
ability to accelerate softwood lumber’s
increase in market share and lumber
usage in the non-residential sector.
The Board’s funding of research on
wood standards has facilitated interest
in using wood-based building systems
in non-traditional markets, such as tall
wood building. The 2021 International
Code Council building standards will
recognize the construction of mass
timber buildings up to 18 stories in
height. These new opportunities require
a more comprehensive approach,
particularly in outreach and education
initiatives. The Board recognized that its
funded programs must go beyond
inspiring professionals to think about
building with wood. These individuals
need resources and technical assistance.
The Board estimated the increased
assessment rate of $0.41 per mbf would
generate additional revenues as shown
in Table 1. The consumption forecast
and assessable board feet figures are
shown in billion board feet (bbf).
The additional funds will support
programs targeting contractors and
developers to address installer training
and skills development; establish an
education program that will target
architecture and engineering students,
VerDate Sep<11>2014
16:18 Feb 24, 2021
Jkt 253001
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
E:\FR\FM\25FER1.SGM
25FER1
ER25FE21.000
11388
11389
Final Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–
612), the Agricultural Marketing Service
(AMS) is required to examine the
impact of the action 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 the actions so that
small businesses will not be
disproportionately burdened. The Small
Business Administration (SBA) defines,
in 13 CFR part 121, small agricultural
service firms (domestic manufacturers
and importers) as those having annual
receipts of no more than $8 million.1
The Random Lengths Publications,
Inc.’s yearly average framing lumber
composite price was $356 per mbf in
2019. Dividing the $8 million threshold
that defines an agricultural service firm
as small by this price results in a
maximum threshold of 22.5 million
board feet (mmbf) of softwood lumber
per year that a domestic manufacturer or
importer may ship to be considered a
small entity for purposes of the RFA.
Table 2 shows the number of entities
and the amount of volume they
represent that may be categorized as
small or large based on the SBA
definition.
As shown in Table 2, there are a total
of 1,396 domestic manufacturers and
importers of softwood lumber based on
2019 data. Of these, 1,000 entities, or 72
percent, shipped or imported less than
22.5 mmbf and would be considered
small under the SBA definition. These
1,000 entities domestically
manufactured or imported 3.25 billion
board feet (bbf) in 2019, less than 5
percent of total volume.
While this action increases the
assessment obligation on domestic
manufacturers and importers from $0.35
per mbf to $0.41 per mbf, the impact on
these entities will be minimal and
uniform. The current assessment rate of
$0.35 per mbf represents 0.1 percent of
the Random Lengths 2019 average
framing lumber composite price of $356
per mbf. The assessment rate of $0.41
per mbf is 0.12 percent of this price. The
increase in assessment rate represents
an increase in cost to domestic
manufacturers and importers of twothousandth of one percentage point
relative to their average received price.
This cost, though minimal, will also be
offset by the benefits derived from the
program.
The 1996 Farm Bill requires that
Research and Promotion programs be
evaluated every five years with the
specific goal of measuring the economic
impact of commodity promotion on
demand for the commodity. The Board
completed its first five-year evaluation
of program effectiveness in 2016. The
five-year evaluation, conducted by
Prime Consulting, found that softwood
lumber use per square foot increased
nearly 23 percent among architects and
structural engineers from the program’s
inception in 2011 to 2015. The
evaluation also found a cumulative
return on investment (ROI) of more than
$15 in increased sales of softwood
lumber per $1 spent on promotion by
the program between 2012 and 2015.
The cumulative ROI was updated in
2019 to reflect the time period of 2012
to 2018. The result was a return of more
than $23 in increased sales per $1 spent
on promotion.
This rule amends § 1217.52(b) to
increase the assessment rate from $0.35
to $0.41 per mbf. The Order is
administered by the Board with
oversight by the USDA. Under the
program, assessments are collected from
domestic manufacturers and importers
and used for research and promotion
projects designed to strengthen the
position of softwood lumber in the
marketplace. The additional funds
collected at the increased rate will
enable the Board to maintain its existing
programs, while supporting new
programs that will help maintain and
expand markets for softwood lumber.
This rule also amends § 1217.52(h) to
add the conversion factor for square
meters to board feet and make one
conforming change to section 1217.52(c)
regarding voting requirements.
Regarding alternatives, the Board
considered maintaining the current
assessment rate. However, a majority of
Board members determined that an
increase was needed to adequately
support existing programs and fund new
initiatives. The Board discussed
increasing the assessment at its meeting
in November 2018, but after much
consideration it determined it was not
the right time for the industry to make
such a recommendation. In 2019, with
the reduction of assessment revenue and
the program cuts that were made, the
Board again considered the merits of
increasing the assessment rate. This was
discussed at several Board committee
meetings, including meetings of the
Executive Committee on September 17,
2019, and November 19, 2019, and the
Finance Committee on November 19,
2019. The Board also considered rates of
$0.39 and $0.50 per mbf. After much
discussion at committee meetings and
with the full Board, the Board
recommended increasing the rate from
$0.35 to $0.41 per mbf.
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 rule
will not result in a change to the
1 SBA does have a small business size standard
for ‘‘Sawmills’’ of 500 employees (see https://
www.sba.gov/sites/default/files/2019-08/
SBA%20Table%20of%20Size%20Standards_
Effective%20Aug%2019%2C%202019_Rev.pdf).
Based on USDA’s understanding of the lumber
industry, using this criterion would be impractical
as sawmills often use contractors rather than
employees to operate and, therefore, many mills
would fall under this criterion while being, in
reality, a large business. Therefore, USDA used
agricultural service firm as a more appropriate
criterion for this analysis.
as well as professionals; and restore the
Board’s communications program
budget so that by 2025 it will be
equivalent to 2018 expenditures.
Therefore, the Board recommended
increasing the assessment rate in the
Order from $0.35 to $0.41 per mbf.
VerDate Sep<11>2014
16:18 Feb 24, 2021
Jkt 253001
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
E:\FR\FM\25FER1.SGM
25FER1
ER25FE21.001
Federal Register / Vol. 86, No. 36 / Thursday, February 25, 2021 / Rules and Regulations
11390
Federal Register / Vol. 86, No. 36 / Thursday, February 25, 2021 / Rules and Regulations
information collection and
recordkeeping requirements previously
approved and will impose no additional
reporting and recordkeeping burden on
domestic manufacturers and importers
of softwood lumber.
As with all Federal promotion
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. 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.
A proposed rule concerning this
action was published in the Federal
Register on August 13, 2020 (85 FR
49281). A 60-day comment period
ending October 13, 2020, was provided
to allow interested persons to submit
comments.
Analysis of Comments
Twenty-nine comments were received
in response to the proposed rule. Of
those 29 comments, 22 supported the
proposed assessment increase, six
opposed the action, and one was outside
the scope of the rulemaking.
Overall, commenters in support of the
proposal expressed that increasing
market share by developing new
markets and uses for softwood lumber
products while addressing the
continued pressures from competitors is
paramount to the continued success of
the softwood lumber industry. They
contend this may only be accomplished
by the increased investment in the
softwood lumber program. One
commenter, who identified as a small
sawmill, argued that the proposed
increase was not enough, and an
assessment rate of $0.50 per mfb or
more was warranted to continue
promoting and developing new markets
and uses for softwood lumber products.
Commenters expressed the need for
continued work on wood standards and
the adoption of using wood-based
products in non-traditional markets.
They emphasized the importance of
educational programs and continued
technical assistance for builders,
designers, developers, architects and
engineers. Several commenters
discussed the benefit of being able to
work collaboratively as an industry to
drive demand for softwood lumber,
noting that the efforts of the program are
critical to the long-term success of the
VerDate Sep<11>2014
16:18 Feb 24, 2021
Jkt 253001
softwood lumber industry. Commenters
noted the return on investment and
incremental demand results from the
most recent program evaluation as
evidence of the success of the program
thus far. And two commenters
mentioned the results of the 2018
continuance referendum (78 percent of
manufacturers and importers voting,
who represented 94 percent of the
volume of softwood lumber, were in
favor of continuing the program) to
demonstrate the continued support of
the industry for the program.
Out of the six comments in
opposition, three commenters noted that
the industry is currently seeing record
demand and historically high prices,
and that the need for an increase in the
assessment to fund programming geared
towards creating additional demand is
not necessary. Two commenters noted
that the Board should be able to create
demand at the current funding levels.
One commenter simply opposed the
increase, but did not provide further
detail. In its discussion of the proposed
increase, the Board determined that
continuing at the current funding level
would limit its ability to maintain the
impact it has achieved for the softwood
lumber industry in prior years. It
reviewed its revenues and expenditures
for the past several fiscal periods and
agreed that without the increase it
would not be able to maintain its
current programs nor be able to address
gaps that limit the Board’s ability to
expand the market for softwood lumber.
Additionally, it believed current
funding levels restricts its ability to
accelerate softwood lumber’s increase in
market share and lumber usage in the
non-traditional markets. In formulating
the proposed increase, the Board
reviewed several different rate options,
including not increasing the rate, but
ultimately decided that additional funds
generated by the increase are needed to
maintain and expand markets for
softwood lumber. None of the
commenters provided comments on the
addition of the conversion factor and
the conforming change. Accordingly, no
changes will be made to the rule as
proposed, based on the comments
received.
After consideration of all relevant
material presented, including the
information and recommendations
submitted by the Board, the comments
received, 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.
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
List of Subjects in 7 CFR Part 1217
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Softwood Lumber promotion, Reporting
and recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 1217 is amended
as follows:
PART 1217—SOFTWOOD LUMBER
RESEARCH, PROMOTION,
CONSUMER EDUCATION AND
INDUSTRY INFORMATION ORDER
1. The authority citation for 7 CFR
part 1217 continues to read as follows:
■
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
2. Amend § 1217.52 by revising
paragraphs (b), (c), and (h) to read as
follows:
■
§ 1217.52
Assessments.
*
*
*
*
*
(b) Subject to the exemptions
specified in § 1217.53, each
manufacturer for the U.S. market shall
pay an assessment to the Board at the
rate of $0.41 per thousand board feet of
softwood lumber, except that no person
shall pay an assessment on the first 15
million board feet of softwood lumber
otherwise subject to assessment in a
fiscal year. Domestic manufacturers
shall pay assessments based on the
volume of softwood lumber shipped
within the United States and importers
shall pay assessments based on the
volume of softwood lumber imported to
the United States.
(c) At least 24 months after the Order
becomes effective and periodically
thereafter, the Board shall review and
may recommend to the Secretary, upon
an affirmative vote by at least a majority
of Board members plus two (exclusive
of vacant seats), a change in the
assessment rate. In no event may the
rate be less than $0.35 per thousand
board feet nor more than $0.50 per
thousand board feet. A change in the
assessment rate is subject to rulemaking
by the Secretary.
*
*
*
*
*
(h) The HTSUS categories and
assessment rates on imported softwood
lumber are listed in the following table.
The assessment rates are computed
using the following conversion factors:
One cubic meter (m3) equals
0.423776001 thousand board feet, and
one square meter (m2) equals
0.010763104 thousand board feet.
Accordingly, the assessment rate per
cubic meter and square meter is as
follows.
E:\FR\FM\25FER1.SGM
25FER1
Federal Register / Vol. 86, No. 36 / Thursday, February 25, 2021 / Rules and Regulations
TABLE 1 TO PARAGRAPH (h)
Softwood lumber
(by HTSUS number)
4407.11.00
4407.12.00
4407.19.05
4407.19.06
4407.19.10
4409.10.05
4409.10.10
4409.10.20
4409.10.90
4418.99.10
*
Assessment
$/cubic
meter
Assessment
$/square
meter
0.1737
0.1737
0.1737
0.1737
0.1737
0.1737
0.1737
0.1737
0.1737
0.1737
0.004412
0.004412
0.004412
0.004412
0.004412
0.004412
0.004412
0.004412
0.004412
0.004412
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
*
*
*
*
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2021–03467 Filed 2–24–21; 8:45 am]
BILLING CODE P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 327
RIN 3064–AF65
Assessments, Amendments To
Address the Temporary Deposit
Insurance Assessment Effects of the
Optional Regulatory Capital
Transitions for Implementing the
Current Expected Credit Losses
Methodology
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
AGENCY:
The Federal Deposit
Insurance Corporation is adopting
amendments to the risk-based deposit
insurance assessment system applicable
to all large insured depository
institutions (IDIs), including highly
complex IDIs, to address the temporary
deposit insurance assessment effects
resulting from certain optional
regulatory capital transition provisions
relating to the implementation of the
current expected credit losses (CECL)
methodology. The final rule removes the
double counting of a specified portion
of the CECL transitional amount or the
modified CECL transitional amount, as
applicable (collectively, the CECL
transitional amounts), in certain
financial measures that are calculated
using the sum of Tier 1 capital and
reserves and that are used to determine
assessment rates for large or highly
complex IDIs. The final rule also adjusts
the calculation of the loss severity
measure to remove the double counting
of a specified portion of the CECL
transitional amounts for a large or
highly complex IDI. This final rule does
SUMMARY:
VerDate Sep<11>2014
16:18 Feb 24, 2021
Jkt 253001
not affect regulatory capital or the
regulatory capital relief provided in the
form of transition provisions that allow
banking organizations to phase in the
effects of CECL on their regulatory
capital ratios.
DATES: The final rule is effective April
1, 2021.
FOR FURTHER INFORMATION CONTACT:
Scott Ciardi, Chief, Large Bank Pricing,
(202) 898–7079 or sciardi@fdic.gov;
Ashley Mihalik, Chief, Banking and
Regulatory Policy, (202) 898–3793 or
amihalik@fdic.gov; Nefretete Smith,
Counsel, (202) 898–6851 or nefsmith@
fdic.gov; Sydney Mayer, Senior
Attorney, (202) 898–3669 or smayer@
fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Policy Objectives and Overview of
Final Rule
The Federal Deposit Insurance Act
(FDI Act) requires that the FDIC
establish a risk-based deposit insurance
assessment system for insured
depository institutions (IDIs).1
Consistent with this statutory
requirement, the FDIC’s objective in
finalizing this rule is to ensure that IDIs
are assessed in a manner that is fair and
accurate. In particular, the primary
objective of this final rule is to remove
a double counting issue in several
financial measures used to determine
deposit insurance assessment rates for
large or highly complex banks, which
could result in a deposit insurance
assessment rate for a large or highly
complex bank that does not accurately
reflect the bank’s risk to the deposit
insurance fund (DIF), all else equal.2
The final rule amends the assessment
regulations to remove the double
1 12 U.S.C. 1817(b). As used in this final rule, the
term ‘‘insured depository institution’’ has the same
meaning as it is used in section 3(c)(2) of the FDI
Act, 12 U.S.C. 1813(c)(2). Pursuant to this
requirement, the FDIC first adopted a risk-based
deposit insurance assessment system effective in
1993 that applied to all IDIs. See 57 FR 45263 (Oct.
1, 1992). The FDIC implemented this assessment
system with the goals of making the deposit
insurance system fairer to well-run institutions and
encouraging weaker institutions to improve their
condition, and thus, promote the safety and
soundness of IDIs.
2 As used in this final rule, the term ‘‘small bank’’
is synonymous with ‘‘small institution,’’ the term
‘‘large bank’’ is synonymous with ‘‘large
institution,’’ and the term ‘‘highly complex bank’’
is synonymous with ‘‘highly complex institution,’’
as the terms are defined in 12 CFR 327.8. For
assessment purposes, a large bank is generally
defined as an institution with $10 billion or more
in total assets, a small bank is generally defined as
an institution with less than $10 billion in total
assets, and a highly complex bank is generally
defined as an institution that has $50 billion or
more in total assets and is controlled by a parent
holding company that has $500 billion or more in
total assets, or is a processing bank or trust
company. See 12 CFR 327.8(e), (f), and (g).
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
11391
counting of a portion of the CECL
transitional amounts, in certain
financial measures used to determine
deposit insurance assessment rates for
large or highly complex banks. In
particular, certain financial measures
are calculated by summing Tier 1
capital, which includes the CECL
transitional amounts, and reserves,
which already reflects the
implementation of CECL. As a result, a
portion of the CECL transitional
amounts is being double counted in
these measures, which in turn affects
assessment rates for large or highly
complex banks. The final rule also
adjusts the calculation of the loss
severity measure to remove the double
counting of a portion of the CECL
transitional amounts for large or highly
complex banks.
This final rule amends the deposit
insurance system applicable to large
banks and highly complex banks only,
and it does not affect regulatory capital
or the regulatory capital relief provided
in the form of transition provisions that
allow banking organizations to phase in
the effects of CECL on their regulatory
capital ratios.3 Specifically, in
calculating another measure used to
determine assessment rates for all IDIs,
the Tier 1 leverage ratio, the FDIC will
continue to apply the CECL regulatory
capital transition provisions, consistent
with the regulatory capital relief
provided to address concerns that
despite adequate capital planning,
unexpected economic conditions at the
time of CECL adoption could result in
higher-than-anticipated increases in
allowances.4
The FDIC did not receive any
comment letters in response to the
proposal and is adopting the proposed
rule as final without change. Under this
final rule, amendments to the deposit
insurance assessment system and
changes to regulatory reporting
requirements will be applicable only
while the regulatory capital relief
described above, or any potential future
amendment that may affect the
3 Banking organizations subject to the capital rule
include national banks, state member banks, state
nonmember banks, savings associations, and toptier bank holding companies and savings and loan
holding companies domiciled in the United States
not subject to the Federal Reserve Board’s Small
Bank Holding Company Policy Statement (12 CFR
part 225, appendix C), but exclude certain savings
and loan holding companies that are substantially
engaged in insurance underwriting or commercial
activities or that are estate trusts, and bank holding
companies and savings and loan holding companies
that are employee stock ownership plans. See 12
CFR part 3 (Office of the Comptroller of the
Currency)); 12 CFR part 217 (Board); 12 CFR part
324 (FDIC). See also 84 FR 4222 (Feb. 14, 2019) and
85 FR 61577 (Sept. 30, 2020).
4 See 84 FR 4225 (Feb. 14, 2019).
E:\FR\FM\25FER1.SGM
25FER1
Agencies
[Federal Register Volume 86, Number 36 (Thursday, February 25, 2021)]
[Rules and Regulations]
[Pages 11387-11391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03467]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 86, No. 36 / Thursday, February 25, 2021 /
Rules and Regulations
[[Page 11387]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1217
[Document Number AMS-SC-20-0014]
Softwood Lumber Research, Promotion, Consumer Education and
Industry Information Order; Assessment Rate Increase
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Softwood Lumber Research, Promotion,
Consumer Education and Industry Information Order (Order) to increase
the assessment rate from $0.35 to $0.41 per thousand board feet (mbf).
The Order is administered by the Softwood Lumber Board (Board) with
oversight by the U.S. Department of Agriculture (USDA). This rule will
also add the conversion factor for square meters to board feet and
makes one conforming change.
DATES: Effective Date: April 1, 2021.
FOR FURTHER INFORMATION CONTACT: Andrea Ricci, Marketing Specialist,
Promotion and Economics Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC
20250-0244; telephone: (202) 572-1442; facsimile: (202) 205-2800; or
electronic mail: [email protected].
SUPPLEMENTARY INFORMATION: This final rule affecting 7 CFR part 1217
(herein the ``Order'') is authorized under the Commodity Promotion,
Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Orders 12866 and 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 falls within a category of regulatory actions that the
Office of Management and Budget (OMB) exempted from Executive Order
12866 review.
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 (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, must 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 amends the Order by increasing the assessment rate from
$0.35 to $0.41 per mbf of softwood lumber shipped within or imported
into the United States. The Order is administered by the Board with
oversight by the USDA. Under the program, assessments are collected
from domestic manufacturers and importers and used for research and
promotion projects designed to strengthen the position of softwood
lumber in the marketplace. The additional funds will enable the Board
to maintain its existing programs, while supporting new programs that
will help maintain and expand markets for softwood lumber. This rule
will also add the conversion factor for square meters to board feet and
make one conforming change.
The Order specifies that the funds to cover the Board's expenses
shall be paid by assessments on manufacturers for the U.S. market,
other income of the Board, and other funds available to the Board.
Domestic manufacturers pay assessments based on the volume of softwood
lumber shipped within the United States and importers pay assessments
based on the volume of softwood lumber imported to the United States.
Assessments are collected per mbf of softwood lumber, except that no
entity shall pay an assessment on the first 15 million board feet
(mmbf) of softwood lumber otherwise subject to assessments in a fiscal
year. Domestic manufacturers are required to remit to the Board
assessments owed no later than 30 calendar days of the month following
the end of the quarter in which the softwood lumber was shipped.
Importers are responsible for paying assessments to the Board on
softwood lumber imported into the United States through the U.S.
Customs and Border Protection (CBP). If CBP does not collect an
assessment from the importer, the importer is responsible for paying
the assessment to the Board no later than 30 calendar days of the month
following the end of the quarter in which the softwood lumber was
imported. Domestic manufacturers and importers must also remit to the
Board required reports.
The Order also provides for exemptions from assessments. Section
1217.53 specifies that U.S. manufacturers and importers that
domestically ship and/or import less
[[Page 11388]]
than 15 mmbf annually, exports of softwood lumber from the United
States, and shipments and imports of organic softwood lumber are exempt
from the Order's assessment requirements.
Pursuant to Sec. 1217.52, and subject to the exemptions specified
in Sec. 1217.53, each domestic manufacturer and importer shall pay an
assessment rate of $0.35 per mbf of softwood lumber, except that no
entity shall pay an assessment on the first 15 mmbf of softwood lumber
otherwise subject to assessment in a fiscal year. The assessment rate
may not be less than $0.35 per mbf nor more than $0.50 per mbf. Section
1217.44(c) prescribes that the Board may recommend to the Secretary a
change in the assessment rate as it deems appropriate by at least a
majority of Board members plus two (exclusive of vacant seats).
The $0.35 per mbf assessment rate has been in effect since the
program's inception in 2011. The Board's fiscal year runs from January
1 through December 31. Board expenditures for the five-year period from
2014-2018 have ranged from a low of $12.35 million in 2014 to a high of
$15.32 million in 2016; expenditures in 2018 were $14.23 million.
Program expenditures averaged $12.96 million during those five years,
with annual expenditures averaging $3.29 million (24 percent) for
research conducted on wood standards; $4.06 million (29 percent) on a
communications program, which includes continuing education courses for
architects and engineers; and $3.94 million (28 percent) on a
construction and design program that provides technical support to
architects and structural engineers about using wood. Pursuant to Sec.
1217.50(h), administrative expenditures have been under 8 percent of
the assessments collected and other income received by and available to
the Board for the fiscal year.
Board assessment income has ranged from $12.55 million in 2014 to
$13.74 million in 2018. About 70 percent of the assessment income is
from domestic manufacturers and 30 percent is from importers.
Additionally, pursuant to Sec. 1217.50(i), the Board maintains a
monetary reserve with funds that do not exceed one fiscal period's
budget. This rule will also amend Sec. 1217.52(h) to add the
conversion factor for square meters to board feet. Currently, the Order
provides a factor used to convert cubic meters of imported softwood
lumber into the equivalent volume of thousands of board feet, thus
enabling the Board to calculate appropriate assessments. Softwood
lumber is also being imported in square meters. Adding a conversion
factor for square meters will better reflect current industry practices
and facilitate the administration of the program.
Finally, this rule will make a conforming change to Sec.
1217.52(c) to reflect previously revised voting requirements in Sec.
1217.44. In a final rule published in the Federal Register on September
25, 2019 (84 FR 50294), voting requirements prescribed in Sec. 1217.44
were revised to specify that recommendations to change the assessment
rate require affirmation by at least a majority of Board members plus
two (exclusive of vacant seats). Currently, corresponding language in
Sec. 1217.52(c) specifies that an affirmative vote of at least two-
thirds of Board members is required for assessment rate
recommendations. A conforming change in this rule will revise Sec.
1217.52(c) to require affirmation of assessment rate recommendations by
a Board majority plus two, thus harmonizing the language in the two
sections related to assessment recommendations.
Board Recommendation
The Board met on November 20, 2019, and recommended increasing its
assessment rate from $0.35 to $0.41 per mbf. The additional funds will
enable the Board to maintain its existing programs, while supporting
new programs that will help maintain and expand markets for softwood
lumber. For the 2016-2018 fiscal years, the Board has used reserve
funds to bridge the deficit between income and expenses. In 2019, the
Board kept expenditures in line with income and had to make cuts to its
programs, primarily its communications program. The Board discussed the
deficit spending that occurred from 2016-2018 and the funding cuts in
2019, along with the impacts of inflation, and determined that without
the increase it would not be able to maintain its current programs nor
be able to address gaps that limit the Board's ability to expand the
market for softwood lumber. Continuing at the current funding level
would limit its ability to capitalize on new opportunities or address
challenges and maintain the impact the Board has achieved for the
softwood lumber industry in prior years. Additionally, the current
funding level restricts the ability to accelerate softwood lumber's
increase in market share and lumber usage in the non-residential
sector.
The Board's funding of research on wood standards has facilitated
interest in using wood-based building systems in non-traditional
markets, such as tall wood building. The 2021 International Code
Council building standards will recognize the construction of mass
timber buildings up to 18 stories in height. These new opportunities
require a more comprehensive approach, particularly in outreach and
education initiatives. The Board recognized that its funded programs
must go beyond inspiring professionals to think about building with
wood. These individuals need resources and technical assistance.
The Board estimated the increased assessment rate of $0.41 per mbf
would generate additional revenues as shown in Table 1. The consumption
forecast and assessable board feet figures are shown in billion board
feet (bbf).
[GRAPHIC] [TIFF OMITTED] TR25FE21.000
The additional funds will support programs targeting contractors
and developers to address installer training and skills development;
establish an education program that will target architecture and
engineering students,
[[Page 11389]]
as well as professionals; and restore the Board's communications
program budget so that by 2025 it will be equivalent to 2018
expenditures. Therefore, the Board recommended increasing the
assessment rate in the Order from $0.35 to $0.41 per mbf.
Final Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), the Agricultural Marketing Service (AMS) is required to
examine the impact of the action 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 the actions so that small businesses will not be
disproportionately burdened. The Small Business Administration (SBA)
defines, in 13 CFR part 121, small agricultural service firms (domestic
manufacturers and importers) as those having annual receipts of no more
than $8 million.\1\
---------------------------------------------------------------------------
\1\ SBA does have a small business size standard for
``Sawmills'' of 500 employees (see https://www.sba.gov/sites/default/files/2019-08/SBA%20Table%20of%20Size%20Standards_Effective%20Aug%2019%2C%202019_Rev.pdf). Based on USDA's understanding of the lumber industry, using
this criterion would be impractical as sawmills often use
contractors rather than employees to operate and, therefore, many
mills would fall under this criterion while being, in reality, a
large business. Therefore, USDA used agricultural service firm as a
more appropriate criterion for this analysis.
---------------------------------------------------------------------------
The Random Lengths Publications, Inc.'s yearly average framing
lumber composite price was $356 per mbf in 2019. Dividing the $8
million threshold that defines an agricultural service firm as small by
this price results in a maximum threshold of 22.5 million board feet
(mmbf) of softwood lumber per year that a domestic manufacturer or
importer may ship to be considered a small entity for purposes of the
RFA. Table 2 shows the number of entities and the amount of volume they
represent that may be categorized as small or large based on the SBA
definition.
[GRAPHIC] [TIFF OMITTED] TR25FE21.001
As shown in Table 2, there are a total of 1,396 domestic
manufacturers and importers of softwood lumber based on 2019 data. Of
these, 1,000 entities, or 72 percent, shipped or imported less than
22.5 mmbf and would be considered small under the SBA definition. These
1,000 entities domestically manufactured or imported 3.25 billion board
feet (bbf) in 2019, less than 5 percent of total volume.
While this action increases the assessment obligation on domestic
manufacturers and importers from $0.35 per mbf to $0.41 per mbf, the
impact on these entities will be minimal and uniform. The current
assessment rate of $0.35 per mbf represents 0.1 percent of the Random
Lengths 2019 average framing lumber composite price of $356 per mbf.
The assessment rate of $0.41 per mbf is 0.12 percent of this price. The
increase in assessment rate represents an increase in cost to domestic
manufacturers and importers of two-thousandth of one percentage point
relative to their average received price. This cost, though minimal,
will also be offset by the benefits derived from the program.
The 1996 Farm Bill requires that Research and Promotion programs be
evaluated every five years with the specific goal of measuring the
economic impact of commodity promotion on demand for the commodity. The
Board completed its first five-year evaluation of program effectiveness
in 2016. The five-year evaluation, conducted by Prime Consulting, found
that softwood lumber use per square foot increased nearly 23 percent
among architects and structural engineers from the program's inception
in 2011 to 2015. The evaluation also found a cumulative return on
investment (ROI) of more than $15 in increased sales of softwood lumber
per $1 spent on promotion by the program between 2012 and 2015. The
cumulative ROI was updated in 2019 to reflect the time period of 2012
to 2018. The result was a return of more than $23 in increased sales
per $1 spent on promotion.
This rule amends Sec. 1217.52(b) to increase the assessment rate
from $0.35 to $0.41 per mbf. The Order is administered by the Board
with oversight by the USDA. Under the program, assessments are
collected from domestic manufacturers and importers and used for
research and promotion projects designed to strengthen the position of
softwood lumber in the marketplace. The additional funds collected at
the increased rate will enable the Board to maintain its existing
programs, while supporting new programs that will help maintain and
expand markets for softwood lumber. This rule also amends Sec.
1217.52(h) to add the conversion factor for square meters to board feet
and make one conforming change to section 1217.52(c) regarding voting
requirements.
Regarding alternatives, the Board considered maintaining the
current assessment rate. However, a majority of Board members
determined that an increase was needed to adequately support existing
programs and fund new initiatives. The Board discussed increasing the
assessment at its meeting in November 2018, but after much
consideration it determined it was not the right time for the industry
to make such a recommendation. In 2019, with the reduction of
assessment revenue and the program cuts that were made, the Board again
considered the merits of increasing the assessment rate. This was
discussed at several Board committee meetings, including meetings of
the Executive Committee on September 17, 2019, and November 19, 2019,
and the Finance Committee on November 19, 2019. The Board also
considered rates of $0.39 and $0.50 per mbf. After much discussion at
committee meetings and with the full Board, the Board recommended
increasing the rate from $0.35 to $0.41 per mbf.
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 rule will not result in a change to the
[[Page 11390]]
information collection and recordkeeping requirements previously
approved and will impose no additional reporting and recordkeeping
burden on domestic manufacturers and importers of softwood lumber.
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. 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.
A proposed rule concerning this action was published in the Federal
Register on August 13, 2020 (85 FR 49281). A 60-day comment period
ending October 13, 2020, was provided to allow interested persons to
submit comments.
Analysis of Comments
Twenty-nine comments were received in response to the proposed
rule. Of those 29 comments, 22 supported the proposed assessment
increase, six opposed the action, and one was outside the scope of the
rulemaking.
Overall, commenters in support of the proposal expressed that
increasing market share by developing new markets and uses for softwood
lumber products while addressing the continued pressures from
competitors is paramount to the continued success of the softwood
lumber industry. They contend this may only be accomplished by the
increased investment in the softwood lumber program. One commenter, who
identified as a small sawmill, argued that the proposed increase was
not enough, and an assessment rate of $0.50 per mfb or more was
warranted to continue promoting and developing new markets and uses for
softwood lumber products. Commenters expressed the need for continued
work on wood standards and the adoption of using wood-based products in
non-traditional markets. They emphasized the importance of educational
programs and continued technical assistance for builders, designers,
developers, architects and engineers. Several commenters discussed the
benefit of being able to work collaboratively as an industry to drive
demand for softwood lumber, noting that the efforts of the program are
critical to the long-term success of the softwood lumber industry.
Commenters noted the return on investment and incremental demand
results from the most recent program evaluation as evidence of the
success of the program thus far. And two commenters mentioned the
results of the 2018 continuance referendum (78 percent of manufacturers
and importers voting, who represented 94 percent of the volume of
softwood lumber, were in favor of continuing the program) to
demonstrate the continued support of the industry for the program.
Out of the six comments in opposition, three commenters noted that
the industry is currently seeing record demand and historically high
prices, and that the need for an increase in the assessment to fund
programming geared towards creating additional demand is not necessary.
Two commenters noted that the Board should be able to create demand at
the current funding levels. One commenter simply opposed the increase,
but did not provide further detail. In its discussion of the proposed
increase, the Board determined that continuing at the current funding
level would limit its ability to maintain the impact it has achieved
for the softwood lumber industry in prior years. It reviewed its
revenues and expenditures for the past several fiscal periods and
agreed that without the increase it would not be able to maintain its
current programs nor be able to address gaps that limit the Board's
ability to expand the market for softwood lumber. Additionally, it
believed current funding levels restricts its ability to accelerate
softwood lumber's increase in market share and lumber usage in the non-
traditional markets. In formulating the proposed increase, the Board
reviewed several different rate options, including not increasing the
rate, but ultimately decided that additional funds generated by the
increase are needed to maintain and expand markets for softwood lumber.
None of the commenters provided comments on the addition of the
conversion factor and the conforming change. Accordingly, no changes
will be made to the rule as proposed, based on the comments received.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Board, the
comments received, 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.
List of Subjects in 7 CFR Part 1217
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Softwood Lumber promotion, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1217 is
amended as follows:
PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION
AND INDUSTRY INFORMATION ORDER
0
1. The authority citation for 7 CFR part 1217 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Amend Sec. 1217.52 by revising paragraphs (b), (c), and (h) to read
as follows:
Sec. 1217.52 Assessments.
* * * * *
(b) Subject to the exemptions specified in Sec. 1217.53, each
manufacturer for the U.S. market shall pay an assessment to the Board
at the rate of $0.41 per thousand board feet of softwood lumber, except
that no person shall pay an assessment on the first 15 million board
feet of softwood lumber otherwise subject to assessment in a fiscal
year. Domestic manufacturers shall pay assessments based on the volume
of softwood lumber shipped within the United States and importers shall
pay assessments based on the volume of softwood lumber imported to the
United States.
(c) At least 24 months after the Order becomes effective and
periodically thereafter, the Board shall review and may recommend to
the Secretary, upon an affirmative vote by at least a majority of Board
members plus two (exclusive of vacant seats), a change in the
assessment rate. In no event may the rate be less than $0.35 per
thousand board feet nor more than $0.50 per thousand board feet. A
change in the assessment rate is subject to rulemaking by the
Secretary.
* * * * *
(h) The HTSUS categories and assessment rates on imported softwood
lumber are listed in the following table. The assessment rates are
computed using the following conversion factors: One cubic meter (m3)
equals 0.423776001 thousand board feet, and one square meter (m2)
equals 0.010763104 thousand board feet. Accordingly, the assessment
rate per cubic meter and square meter is as follows.
[[Page 11391]]
Table 1 to Paragraph (h)
------------------------------------------------------------------------
Assessment Assessment
Softwood lumber (by HTSUS number) $/cubic $/square
meter meter
------------------------------------------------------------------------
4407.11.00.................................... 0.1737 0.004412
4407.12.00.................................... 0.1737 0.004412
4407.19.05.................................... 0.1737 0.004412
4407.19.06.................................... 0.1737 0.004412
4407.19.10.................................... 0.1737 0.004412
4409.10.05.................................... 0.1737 0.004412
4409.10.10.................................... 0.1737 0.004412
4409.10.20.................................... 0.1737 0.004412
4409.10.90.................................... 0.1737 0.004412
4418.99.10.................................... 0.1737 0.004412
------------------------------------------------------------------------
* * * * *
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2021-03467 Filed 2-24-21; 8:45 am]
BILLING CODE P