Notice2021-18771
2021/2022 Rates Charged for AMS Services: Revised Tobacco Grading Rates
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 31, 2021
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
The Agricultural Marketing Service (AMS) is announcing revisions to the 2021/2022 rates it will charge for voluntary grading services for tobacco. Revised rates are based on financial information obtained since the 2021/2022 rates were announced on April 21, 2021, and will be applied to all services provided since July 1, 2021, and thereafter.
Full Text
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<title>Federal Register, Volume 86 Issue 166 (Tuesday, August 31, 2021)</title>
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[Federal Register Volume 86, Number 166 (Tuesday, August 31, 2021)]
[Notices]
[Pages 48659-48660]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-18771]
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Notices
Federal Register
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or proposed rules that are applicable to the public. Notices of hearings
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Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 /
Notices
[[Page 48659]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Document No. AMS-CN-21-0064]
2021/2022 Rates Charged for AMS Services: Revised Tobacco Grading
Rates
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice.
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SUMMARY: The Agricultural Marketing Service (AMS) is announcing
revisions to the 2021/2022 rates it will charge for voluntary grading
services for tobacco. Revised rates are based on financial information
obtained since the 2021/2022 rates were announced on April 21, 2021,
and will be applied to all services provided since July 1, 2021, and
thereafter.
DATES: September 1, 2021.
FOR FURTHER INFORMATION CONTACT: Dr. Stephen Slinsky, Economist, Cotton
and Tobacco Program, AMS, USDA, 3275 Appling Road, Memphis, TN 38133;
telephone (901) 384-3000, or email <a href="/cdn-cgi/l/email-protection#681b1c0d18000d06461b0401061b0311281d1b0c09460f071e"><span class="__cf_email__" data-cfemail="25565140554d404b0b56494c4b564e5c65505641440b424a53">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Agricultural Marketing Act of 1946, as
amended (AMA) (7 U.S.C. 1621-1627), provides for the collection of fees
to cover costs of various inspection, grading, certification, or
auditing services covering many agricultural commodities and products.
More specifically, the Tobacco Inspection Act (7 U.S.C. 511-511s)
provides for the recovery of costs associated with tobacco inspection
and grading services.
On November 13, 2014, the U.S. Department of Agriculture (USDA)
published in the Federal Register a final rule that established
standardized formulas for calculating fee rates charged by AMS user-
funded programs (79 FR 67313). Every year since then, USDA has
published in the Federal Register a notice announcing rates for its
user-funded programs.
On April 21, 2021, the notice announcing the 2021/2022 fee rates
was published in the Federal Register (86 FR 20476). Since publication
of this notice, per-unit rates necessary to cover direct and indirect
costs associated with providing tobacco inspection and grading services
and necessary to maintain mandated financial reserves have decreased.
Therefore, AMS is announcing revisions to the 2021/2022 rates it will
charge for voluntary grading services for tobacco. Revised rates are
based on updated financial information and will be applied to all
services provided since July 1, 2021, and thereafter.
Rates reflect direct and indirect costs of providing services.
Direct costs include the cost of salaries, employee benefits, operating
costs and, if applicable, travel costs. Indirect or overhead costs
include the cost of Program and Agency activities supporting services
provided to the industry. The formula used to calculate these rates
also considers the need to maintain operating reserves.
Services provided to the tobacco industry include the grading and
certification of quality factors in accordance with established U.S.
Grade Standards. The quality grades serve as a basis for market prices
and reflect the value of agricultural commodities to both producers and
consumers. AMS's grading and certification services are voluntary tools
paid for by the users on a fee-for-service basis. Industry participants
may choose to use these tools to promote and communicate the quality of
tobacco to consumers. AMS is required by statute to recover costs
associated with providing these services.
Rates Calculations
AMS calculated rates for services, on a per-unit basis, by dividing
total AMS operating cost associated with tobacco grading, inspection
and certification by the total number of units graded, inspected and
certified the previous year, which is then multiplied by the next
year's percentage of cost-of-living increase, plus an allowance for bad
debt rate. If applicable, travel expenses may also be added to the cost
of providing the service.
2021/2022 Rates
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Tobacco fees
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7 CFR Part 29--Tobacco Inspection:
Subpart A--Policy Statement and Regulations Governing the Extension
of Tobacco Inspection and Price Support Services to New Markets and
to Additional Sales on Designated Markets; Subpart B--Regulations;
Sec. Sec. 29.123-29.129 Fees and Charges; Sec. 29.500 Fees
and charges for inspection and acceptance of imported tobacco
Subpart F--Policy Statement and Regulations Governing the
Identification and Certification of Non-quota Tobacco Produced and
Marketed in Quota Area;
Sec. 29.9251 Fees and Charges
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Regular Overtime Holiday Includes travel costs in rate Start date
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Domestic Permissive Inspection and $55.00 $64.00 $72.00 ................................ July 1, 2021.
Certification (re-grading of domestic
tobacco for processing plants, retesting
of imported tobacco, and grading tobacco
for research stations).
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Export Permissive Inspection and $0.0025/pound X............................... July 1, 2021.
Certification (grading of domestic
tobacco for manufacturers and dealers
for duty drawback consideration).
[[Page 48660]]
Grading for Risk Management Agency (for $0.015/pound X............................... July 1, 2021.
Tobacco Crop Insurance Quality
Adjustment determinations).
Pesticide Test Sampling (collection of $0.0065/kg or $0.0029/pound X............................... July 1, 2021.
certified tobacco sample and shipment to
AMS National Science Laboratory for
testing).
Pesticide Retest Sampling (collection of $115.00/sample and $55.00/hour X............................... July 1, 2021.
certified tobacco sample from a
previously sampled lot for re-testing at
the AMS National Science Laboratory; fee
includes shipping).
Standards Course (training by USDA- $1,250.00/person ................................ July 1, 2021.
certified instructor on tobacco grading
procedures).
Import Inspection and Certification $0.0170/kg or $0.0080/pound X............................... July 1, 2021.
(grading of imported tobacco for
manufacturers and dealers).
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Authority: 7 U.S.C. 511, 511s; and 7 U.S.C. 1621-1627.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-18771 Filed 8-30-21; 8:45 am]
BILLING CODE P
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