Rule2021-25982
Pima Agriculture Cotton Trust Fund (Agriculture Pima Trust) and Agriculture Wool Apparel Manufacturers Trust Fund (Agriculture Wool Trust)
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
December 6, 2021
Effective
December 6, 2021
Issuing agencies
Agriculture DepartmentCommodity Credit Corporation
Abstract
This final rule amends the USDA regulations on the Agriculture Pima Trust and Agriculture Wool Trust to make technical corrections to update outdated dates and references and to clarify the eligibility and manner in which payments will be calculated under the programs.
Full Text
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[Federal Register Volume 86, Number 231 (Monday, December 6, 2021)]
[Rules and Regulations]
[Pages 68875-68880]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25982]
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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. 231 / Monday, December 6, 2021 /
Rules and Regulations
[[Page 68875]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1471
Pima Agriculture Cotton Trust Fund (Agriculture Pima Trust) and
Agriculture Wool Apparel Manufacturers Trust Fund (Agriculture Wool
Trust)
AGENCY: Commodity Credit Corporation and Foreign Agricultural Service,
U.S. Department of Agriculture (USDA).
ACTION: Final rule.
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SUMMARY: This final rule amends the USDA regulations on the Agriculture
Pima Trust and Agriculture Wool Trust to make technical corrections to
update outdated dates and references and to clarify the eligibility and
manner in which payments will be calculated under the programs.
DATES: This rule is effective December 6, 2021.
FOR FURTHER INFORMATION CONTACT: Curt Alt; Telephone: (202) 690-4784;
email: <a href="/cdn-cgi/l/email-protection#ea899f989ec48b869eaa9f998e8bc48d859c"><span class="__cf_email__" data-cfemail="aecddbdcda80cfc2daeedbddcacf80c9c1d8">[email protected]</span></a>. Persons with disabilities who require an
alternative means for communication of information (e.g., Braille,
large print, audiotape, etc.) should contact Angela Ubrey (Human
Resources, 202-772-4836) or Constance Goodwin (Office of Civil Rights,
202-379-6431).
SUPPLEMENTARY INFORMATION: The Agriculture Pima and Agriculture Wool
Trusts provide annual payments to U.S. cotton and wool producers to
reduce the injury resulting from tariffs on cotton and wool fabrics
that are higher than tariffs on certain apparel articles made of cotton
and wool fabric. The program regulations were last updated in 2019 to
incorporate changes introduced in the Agriculture Improvement Act of
2018 (2018 Farm Bill; Pub. L. 115-334), but the Commodity Credit
Corporation (CCC) has identified areas where technical corrections are
necessary to remove unnecessary and outdated references and dates. This
final rule makes those technical corrections where needed.
In addition, this final rule also clarifies the qualifying fabric
in the payment calculation for manufacturers of cotton shirts to
eliminate confusion for applicants and reduce the risk of waste, fraud,
and abuse. The clarifying revisions are intended to resolve any
confusion among manufacturers of cotton shirts as to the calculation of
qualifying fabric to be submitted in their affidavits. CCC is updating
the regulations to clarify, consistent with Section 12314 of the
Agricultural Act of 2014 (Pub. L. 113-79), as revised in Section 12602
of the 2018 Farm Bill, that the reporting and documentation
requirements for the requested affidavits is based on qualifying fabric
that was purchased in the preceding year in the amount of qualifying
fabric that was actually used by the manufacturer in the production of
men's and boys' shirts in that year in order to reduce the potential
for improper payments. This clarification is intended to ensure that
CCC calculates payments on the same qualifying fabric basis for all
applicants. The value of qualifying fabric purchased for any other
purpose, including fabric held in inventory or destined for resale or
other use, is not eligible for payment under the Agriculture Pima Trust
and should not be included by the manufacturer in the amount reported
in its affidavit.
This rule involves a matter relating to agency management or
personnel or to public property, loans, grants, benefits, or contracts.
Accordingly, notice and other public procedure on this rule are
unnecessary and this rule may be made effective less than 30 days after
publication in the Federal Register. See 5 U.S.C. 553. Further, this
action is not a rule as defined by the Regulatory Flexibility Act (5
U.S.C. 601) and, thus, is exempt from the provisions of that Act.
E-Government Act Compliance
CCC is committed to complying with the E-Government Act of 2002 (44
U.S.C. chapter 36), to promote the use of the internet and other
information technologies to provide increased opportunities for
citizens' access to Government information and services, and for other
purposes.
Executive Order 12866 and 13563
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
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 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility. The requirements in
Executive Orders 12866 and 13573 for the analysis of costs and benefits
apply to rules that are determined to be significant. It has been
determined that this action is not significant for the purposes of
Executive Order 12866; therefore, was not reviewed by the Office of
Management and Budget.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs has designated this
action as not a major rule, as defined by 5 U.S.C. 804(2).
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988, ``Civil Justice Reform.'' This rule does not preempt State or
local laws, regulations, or policies unless they present an
irreconcilable conflict with this rule. This rule will not be
retroactive.
Executive Order 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with officials of State and local
governments that would be directly affected by the proposed Federal
financial assistance. The objectives of the Executive order are to
foster an intergovernmental partnership and a strengthened federalism
by relying on State and local processes for the State and local
government coordination and review of proposed Federal financial
assistance and direct Federal development. This rule will not directly
affect State or local officials and, for this reason, it is
[[Page 68876]]
excluded from the scope of Executive Order 12372.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by
the Small Business Regulatory Enforcement Fairness Act of 1996,
generally requires an agency to prepare a regulatory flexibility
analysis of any rule that is subject to notice and comment rulemaking
under the Administrative Procedure Act (APA) or any other law, unless
the agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. The Regulatory
Flexibility Act does not apply to this rule because CCC is not required
by the APA or any other law to publish a notice of proposed rulemaking
with respect to the subject matter of the rule.
Executive Order 13132
This rule has been reviewed under Executive Order 13132,
``Federalism.'' This rule will not have any substantial direct effect
on States, on the relationship between the Federal Government and the
States, or on the distribution of power and responsibilities among the
various levels of government, except as required by law. This rule does
not impose substantial direct compliance costs on State and local
governments. Therefore, consultation with the States was not required.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with tribes on a government-to-government
basis on policies that have tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian tribes, on the relationship between the Federal Government
and Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes. CCC does not expect
this rule to have any effect on Indian tribes.
Unfunded Mandates
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions on State, local, or Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including a cost benefit analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local, or Tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternative methods and adopt the more cost effective or
least burdensome alternative that achieves the objectives of the rule.
This rule contains no Federal mandates under the regulatory provisions
of Title II of the Unfunded Mandates Reform Act of 1995 for State,
local, or Tribal governments, or the private sector. Therefore, this
rule is not subject to the requirements of sections 202 and 205 of
UMRA.
Paperwork Reduction Act
This final rule contains no new reporting, recordkeeping, or third-
party disclosure requirements under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.).
List of Subjects in 7 CFR Part 1471
Agricultural commodities, Imports.
For the reasons set forth in the preamble, CCC revises 7 CFR part
1471 to read as follows:
PART 1471--PIMA AGRICULTURE COTTON TRUST FUND (AGRICULTURE PIMA
TRUST) AND AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND
(AGRICULTURE WOOL TRUST)
Subpart A--Agriculture Pima Trust
Sec.
1471.1 Provisions common to this subpart.
1471.2 Pima cotton payments.
1471.3 Affidavit of producers of ring spun pima cotton yarn.
1471.4 Affidavit of manufacturers of pima cotton shirts.
1471.5 Affidavit of pima cotton trade associations.
Subpart B--Agriculture Wool Trust
1471.10 Provisions common to this subpart.
1471.11 Payments to manufacturers of certain worsted wool fabrics.
1471.12 Refund of duties paid on imports of certain wool products.
1471.13 Monetization of the wool tariff rate quota.
1471.14 Wool yarn, wool fiber, and wool top duty compensation
payment.
Authority: Sections 12314 and 12315, Pub. L. 113-79, 128 Stat.
649, as amended by sections 12602 and 12603, Pub. L. 115-334, 132
Stat. 4490 (7 U.S.C. 2101 note and 7101 note).
Subpart A--Agriculture Pima Trust
Sec. 1471.1 Provisions common to this subpart.
(a) Agriculture Pima Trust--(1) Establishment. The Agriculture Pima
Trust has been established to provide funding for payments under this
subpart.
(2) Purpose. The purpose of the Agriculture Pima Trust is to reduce
the injury to domestic manufacturers resulting from tariffs on cotton
fabric that are higher than tariffs on certain apparel articles made of
cotton fabric.
(3) Funding availability. $16,000,000 will be available annually
for eligible payments authorized under this subpart.
(4) Definitions. As used in this subpart:
Agriculture Pima Trust means the Pima Agriculture Cotton Trust
Fund.
CCC means the Commodity Credit Corporation.
FAS means the Foreign Agricultural Service.
Secretary means the Secretary of Agriculture.
U.S. means the United States of America.
(b) Other provisions common to this subpart--(1) Affidavits. FAS
shall annually, not later than February 15 of the year of the
applicable payment, make affidavits available on the FAS website.
Affidavits must be submitted in accordance with the instructions
provided on the FAS website.
(2) Filing deadline. Any person filing an affidavit under this
subpart for a particular year must file the affidavit not later than
March 15 of the applicable calendar year.
(3) Affirmation. By submitting an affidavit under this subpart, an
applicant is affirming that all information contained in the
application is complete and correct and that the information does not
contain a false claim, statement, or representation.
(4) Document retention. All persons receiving a payment under this
subpart must maintain all pertinent documentation for 3 years after the
year of receipt of the payment.
(5) False statements. Persons providing false or fraudulent claims,
or persons making materially false statements or representations in
their affidavit, are subject to civil or criminal penalties pursuant to
18 U.S.C. 1001.
(6) Confidentiality. Specific business information that is marked
``business confidential'' will be protected from disclosure to the full
extent permitted by law.
(7) Review of affidavits. Affidavits will be reviewed to determine
whether they are complete and responsive to the
[[Page 68877]]
content and form of affidavit requirements under this subpart.
(8) Finality of determinations by Secretary. A determination by the
Secretary about a payment under this subpart shall be final and is not
subject to appeal or protest.
(9) Timing of payments. A payment for which a person is eligible
under this subpart will be disbursed not later than April 15 of the
applicable year.
(10) Sequester. Payments covered by this subpart shall be subject
to sequester of payments, if required by law.
Sec. 1471.2 Pima cotton payments.
From available funds in the Agriculture Pima Trust, CCC will
annually make payments as follows:
(a) Twenty-five percent of the amounts in the Agriculture Pima
Trust shall be paid to one or more nationally recognized associations
established for the promotion of pima cotton for use in textile and
apparel goods, as determined by the Secretary, during the calendar year
immediately preceding the payment.
(b) Twenty-five percent of the amounts in the Agriculture Pima
Trust shall be paid to yarn spinners of pima cotton that produce ring
spun cotton yarns in the U.S. during the calendar year immediately
preceding the payment, to be allocated to each yarn spinner in an
amount that bears the same ratio as:
(1) The yarn spinner's production of ring spun cotton yarns
measuring less than 83.33 decitex (exceeding 120 metric number) from
pima cotton in single and plied form during the prior calendar year;
bears to
(2) The production of the yarns described in paragraph (b)(1) of
this section during the prior calendar year by all yarn spinners that
qualify under this paragraph (b).
(3) A yarn spinner will not receive an amount under this paragraph
(b) that exceeds the cost of pima cotton that was:
(i) Purchased during the prior calendar year; and
(ii) Used in spinning any cotton yarns.
(4) The Secretary will reallocate any amounts reduced by reason of
the limitation under paragraph (b)(3) of this section to spinners using
the ratio described in this paragraph (b), disregarding production of
any spinner subject to that limitation.
(c) Fifty percent of the amounts in the Agriculture Pima Trust
shall be paid to manufacturers that certify, pursuant to the affidavit
under Sec. 1471.4, that, during the calendar year immediately
preceding the payment, they used imported cotton fabric to produce
men's and boys' shirts, to be allocated to each manufacturer in an
amount that bears the same ratio as:
(1) The dollar value (excluding duty, shipping, and related costs)
of imported woven cotton shirting fabric of 80s or higher count and 2-
ply in warp purchased by the manufacturer during the prior calendar
year to produce men's and boys' shirts; bears to
(2) The dollar value (excluding duty, shipping, and related costs)
of the fabric described in paragraph (c)(1) of this section purchased
during the prior calendar year by all manufacturers that qualify under
this paragraph (c).
Sec. 1471.3 Affidavit of producers of ring spun pima cotton yarn.
In addition to any applicable information requirements in Sec.
1471.1, a producer of ring spun cotton yarn must annually provide an
affidavit that affirms:
(a) During the calendar year immediately preceding the payment, the
yarn spinner used pima cotton to produce ring spun cotton yarns in the
U.S. measuring less than 83.33 decitex (exceeding 120 metric number),
in single and plied form;
(b) In the prior calendar year, the yarn spinner actually produced
the quantity, measured in pounds, of ring spun cotton yarns measuring
less than 83.33 decitex (exceeding 120 metric number), in single and
plied form, reported on the affidavit;
(c) The yarn spinner maintains supporting documentation about such
production during the prior calendar year that shows the actual
quantity of such yarns produced, and evidencing the yarns as ring spun
pima cotton yarns measuring less than 83.33 decitex (exceeding 120
metric number), in single and plied form; and
(d) The dollar amount of pima cotton purchased during the prior
calendar year that was used in spinning any cotton yarns, and for which
the producer maintains supporting documentation.
Sec. 1471.4 Affidavit of manufacturers of cotton shirts.
(a) Definition of qualifying fabric. In this section, the term
``qualifying fabric'' means imported woven cotton shirting fabric of
80s or higher count and 2-ply in warp.
(b) In general. In addition to any applicable information
requirements in Sec. 1471.1, a producer of men's and boys' cotton
shirts must annually provide an affidavit that affirms:
(1) During the calendar year immediately preceding the payment, the
manufacturer used qualifying fabric to cut and sew men's and boys'
cotton shirts in the U.S. and the manufacturer has maintained
production records evidencing the dollar value of qualifying fabric
used to cut and sew men's and boys' cotton shirts;
(2) The dollar value of qualifying fabric purchased by the
manufacturer during the calendar year immediately preceding the
payment, except that the dollar value of fabric reported shall not
exceed the dollar value of qualifying fabric used by the manufacturer
to cut and sew men's and boys' woven cotton shirts in the U.S. during
the calendar year immediately preceding the payment, as supported by
production records maintained under paragraph (b)(1) of this section;
(3) The manufacturer maintains invoices and other supporting
documentation (such as price lists and other technical descriptions of
the fabric qualities) showing the dollar value of qualifying fabric
purchased, the date of purchase, and evidencing the fabric as
qualifying fabric; and
(4) The imported cotton fabric purchased in the calendar year
immediately preceding the payment was suitable for use in the
manufacturing of men's and boys' cotton shirts.
(c) Date of purchase. For purposes of the affidavit under paragraph
(b) of this section, the date of purchase shall be the invoice date.
(d) Dollar value of purchase. For purposes of the affidavit under
paragraph (b) of this section, the dollar value shall be determined
excluding duty, shipping, and related costs.
(e) Fabric use. For purposes of the affidavit under paragraph (b)
of this section, and in specific reference to paragraph (b)(2) of this
section, a manufacturer shall not report a dollar value of qualifying
fabric purchased that is more than the dollar value of qualifying
fabric that it used to cut and sew men's and boys' shirts during the
calendar year immediately preceding the payment. The value of
qualifying fabric purchased for any other purpose, including fabric
held in inventory or destined for resale or other use, is not eligible
for payment under the Agriculture Pima Trust and shall not be included
by the manufacturer in the amount reported under paragraph (b)(2) of
this section.
Sec. 1471.5 Affidavit of pima cotton trade associations.
In addition to any applicable information requirements in Sec.
1471.1, trade associations filing a claim for a payment under the
Agriculture Pima Trust must provide a statement that states that during
the calendar year
[[Page 68878]]
immediately preceding the payment they were, as determined by the
Secretary, a domestic nationally recognized association established and
operating for the promotion of pima cotton for domestic use in textile
and apparel goods.
Subpart B--Agriculture Wool Trust
Sec. 1471.10 Provisions common to this subpart.
(a) Agriculture Wool Trust--(1) Establishment. The Agriculture Wool
Trust has been established to provide funding for payments under this
subpart.
(2) Purpose. The purpose of the Agriculture Wool Trust is to reduce
the injury to domestic manufacturers resulting from tariffs on wool
fabric that are higher than tariffs on certain apparel articles made of
wool fabric.
(3) Funding availability. Not more than $30,000,000 will be
available annually for payments authorized under this subpart.
(4) Definitions. As used in this subpart:
Agriculture Wool Trust means the Agriculture Wool Apparel
Manufacturers Trust Fund.
CCC means the Commodity Credit Corporation.
FAS means the Foreign Agricultural Service.
HTS means the Harmonized Tariff Schedule of the United States.
Secretary means the Secretary of Agriculture.
TRQ means Tariff Rate Quota.
U.S. means the United States of America.
(b) Provisions common to this subpart--(1) Affidavits. FAS shall
annually, not later than February 15 of the year of the applicable
payment, make affidavits available on the FAS website. Affidavits must
be submitted in accordance with the instructions provided on the FAS
website.
(2) Filing deadline. Any person filing an affidavit under this
subpart for a particular year must file the affidavit not later than
March 1 of such year.
(3) Affirmation. By submitting an affidavit under this subpart, an
applicant is affirming that all information contained in the
application is complete and correct and that the information does not
contain a false claim, statement, or representation.
(4) Document retention. All persons receiving a payment under this
subpart must maintain all pertinent documentation for three years after
the year of receipt of the payment.
(5) False statements. Persons providing false or fraudulent claims
or making materially false statements or representations are subject to
civil or criminal penalties pursuant to 18 U.S.C. 1001.
(6) Confidential information. Specific business information
provided in affidavits that is marked ``business confidential'' will be
protected from disclosure to the full extent permitted by law.
(7) Review of affidavits. Affidavits will be reviewed to determine
whether they are complete and responsive to the content and form of
affidavit requirements in this subpart.
(8) Finality of determination by the Secretary. A determination by
the Secretary about a payment under this subpart shall be final and is
not subject to appeal or protest.
(9) Timing of payments. A payment for which a person is eligible
under this subpart will be disbursed not later than April 15 of the
applicable year.
(10) Proration and sequester. Payments covered by this subpart will
be subject to proration in the event that insufficient funds exist in
the Agriculture Wool Trust during the year of the payment, and will be
subject to sequester, if required by law.
(11) HTS subheadings. All references to subheadings of the HTS in
this subpart are to the subheadings as described in the HTS in 2014.
Sec. 1471.11 Payments to manufacturers of certain worsted wool
fabrics.
(a) Definitions. In this section the following definitions apply:
Eligible person means a manufacturer in the U.S. of qualifying
worsted wool fabric during the calendar year immediately preceding the
payment and during each of calendar years 1999, 2000, and 2001.
Qualifying worsted wool fabric means a worsted wool fabric
containing at least 85% by weight worsted wool of the kind described in
subheading 9902.51.11 or 9902.51.15 of the 2014 HTS that, during the
calendar year immediately preceding the payment and during each of
calendar years 1999, 2000, and 2001, was manufactured by an eligible
person in the United States.
(b) Distribution of funds. From amounts in the Agriculture Wool
Trust, CCC will annually make payments to eligible persons that
manufactured qualifying worsted wool fabric as provided in paragraph
(b)(1) or (2) of this section.
(1) Payments for production under subheading 9902.51.11 of the HTS.
A total of $2,666,000 will be allocated annually among eligible persons
covered by this paragraph (b)(1) on the basis of the percentage of each
eligible person's total production (actual production, not estimates)
of qualifying worsted wool fabric that is of the kind described in
subheading 9902.51.11 of the HTS for each of the calendar years 1999,
2000, and 2001 in relation to the total production of such fabric by
all eligible persons who qualify for payments under this paragraph
(b)(1) for each of the calendar years 1999, 2000, and 2001.
(2) Payments for production under subheading 9902.51.15. A total of
$2,666,000 will be allocated annually among eligible persons covered by
this paragraph (b)(2) on the basis of the percentage of each eligible
person's total production (actual production, not estimates) of
qualifying worsted wool fabric that conforms in composition to
subheading 9902.51.15 of the HTS for each of the calendar years 1999,
2000, and 2001 in relation to the total production of such fabric by
all eligible persons who qualify for payments under this paragraph
(b)(2) for each of the calendar years 1999, 2000, and 2001.
(c) Annual affidavit--(1) In general. An eligible person applying
for a payment under this section shall comply with all applicable
reporting requirements of this section and of Sec. 1471.10.
(2) Specific business information. An eligible person shall
annually report the actual dollar value and the actual quantity (linear
yards) of qualifying worsted wool fabric that was manufactured in the
calendar year immediately preceding the payment and for each of
calendar years 1999, 2000, and 2001.
(3) Manufacturing of wool. When reporting the annual dollar value
and quantity of the qualifying wool fabric that was manufactured, an
eligible person may either have manufactured the qualifying worsted
wool on its own behalf or had another person manufacture the qualifying
worsted wool fabric, provided the eligible person owned the qualifying
worsted wool fabric at the time of manufacture.
Sec. 1471.12 Refund of duties paid on imports of certain wool
products.
(a) Eligible wool. Eligible wool under the Duty Refund program
means imported wool yarn of the kind described in section 505 of the
Trade and Development Act of 2000 Public Law 106-200 (May 18, 2000).
(b) Payments--(1) Eligibility. Persons eligible for a Duty Refund
payment are manufacturers who, in the year immediately preceding the
payment, were actively engaged in manufacturing wool (as determined by
FAS), and in calendar years 2000, 2001, and 2002--
[[Page 68879]]
(i) Imported eligible wool directly or indirectly; and
(ii) Used the imported wool to make men's or boy's suits; or
(iii) Further manufactured the eligible imported wool.
(2) Payment amount. Persons eligible for a Duty Refund payment
shall be paid the same amounts that were made to the persons by U.S.
Customs and Border Protection (CBP) in 2005.
Sec. 1471.13 Monetization of the wool tariff rate quota.
(a) Definitions. In this section the following definitions apply:
(1) Lower duty rate. The term ``lower duty rate'' means the duty
rate as codified in the 2014 HTS that would have been applicable to
qualifying worsted wool fabric of the kind described in subheadings
9902.51.11, 9902.51.15, and 9902.51.16 of the 2014 HTS prior to the
expiration of the Wool TRQ on December 31, 2014.
(2) Eligible person. The term ``eligible person'' means a
manufacturer (or a successor-in-interest to the manufacturer) in the
U.S. or in a Foreign Trade Zone authorized under the Foreign-Trade
Zones Act of 1934 (19 U.S.C. 81a-81u) that, during the calendar year
immediately preceding the payment, imported qualifying worsted wool
fabric and used the imported qualifying worsted wool fabric as
described in paragraph (a)(3) of this section.
(3) Qualifying worsted wool fabric. The term ``qualifying worsted
wool fabric'' means imported worsted wool fabric containing at least
85% by weight worsted wool of the kind described in subheading
9902.51.11, 9902.51.15, or 9902.51.16 of the 2014 HTS that, during the
calendar year immediately preceding the payment was:
(i) Imported by an eligible person in the U.S.; and
(ii) Used by the eligible person in the U.S.
(A) In the case of wool fabric of the kind described in subheading
9902.51.11 or 9902.51.15 of the HTS, the qualifying fabric shall be
used to produce worsted wool suits, suit-type jackets, or trousers for
men and boys; or
(B) In the case of wool fabric of the kind described in subheading
9902.51.16 of the HTS, the qualifying fabric shall be used in
manufacturing.
(4) Successor-in-interest. The term ``successor-in-interest'' means
a person that is eligible to claim a payment under this section as if
the person were the original eligible person, without regard to section
3727, title 31, United States Code. A person may succeed to the status
of the successor-in-interest to the eligible person and become eligible
for the payment because of--
(i) An assignment of the claim;
(ii) An assignment of the original eligible person's right to
manufacture under the same trade name; or
(iii) A reorganization of the eligible person.
(b) Purposes. The purposes of a TRQ monetization payment are to
provide an eligible person--
(1) Compensation for termination of the TRQ for qualifying worsted
wool fabric; and
(2) A payment that is equivalent to the amount the eligible person
would have saved during the calendar year immediately preceding the
payment for imports of qualifying worsted wool fabric if the lower duty
rate under the applicable 2014 HTS subheading(s) of a qualifying
worsted wool fabric were in effect.
(c) Calculation of monetized TRQ payment. A payment will be
established by calculating the savings that would have been realized by
the eligible person for imports of qualifying worsted wool fabric had
the lower duty rate been in effect by--
(1) Establishing the reported dollar value of imported worsted wool
fabric, for each of the 2014 HTS subheadings of worsted wool fabric,
during the calendar year immediately preceding the payment;
(2) Subtracting the duty rate (converted to numeric value) for each
applicable 2014 HTS subheading of worsted wool fabric that would have
been paid in calendar year 2014 from the duty rate (converted to
numeric value) that was actually paid in the calendar year immediately
preceding the payment;
(3) For each applicable 2014 HTS subheading of worsted wool fabric,
multiplying the numeric values described in paragraphs (c)(1) and (2)
of this section; and
(4) Adding each product obtained in paragraph (c)(3) of this
section.
(d) Annual affidavit--(1) In general. An eligible person applying
for a payment under this section shall comply with all applicable
reporting requirements of this section and of Sec. 1471.10.
(2) Specific business information--(i) Imports and production. An
eligible person shall, for the entire calendar year immediately
preceding the payment, report the actual dollar value and the actual
quantity (square meters) of their imports into the U.S. of qualifying
worsted wool fabric and the amount of qualifying worsted wool fabric
used by the eligible person in the U.S.
(ii) Direct and indirect importers. Eligible persons that directly
import qualifying worsted wool fabric and pay the import duty for such
wool are considered to be direct importers of the qualifying worsted
wool fabric. Persons that import qualifying worsted wool fabric through
a third party broker are considered to be indirect importers of the
qualifying worsted wool fabric. Eligible persons must state in their
annual affidavit whether, in the calendar year immediately preceding
the payment, they were direct or indirect importers, and the dollar
value of the imported qualifying worsted wool fabric. The reported
dollar value of such imports by indirect importers will be subject to a
10% reduction.
(iii) Import documentation. Eligible persons must maintain
supporting documentation for the amounts reported on their affidavits
and shall provide copies of such supporting documentation upon the
request of FAS.
(3) Production of garments or manufacturing of qualifying worsted
wool fabric--(i) Production of garments. When reporting the annual
dollar value and quantity of imported qualifying worsted wool fabric of
the kind described in subheadings 9902.51.11 and 9902.51.15 of the 2014
HTS, an eligible person may either have cut and sewn the wool on its
own behalf or had another person cut and sew the wool on behalf of the
eligible person, provided the eligible person owned the wool at the
time it was cut and sewn.
(ii) Manufacturing of qualifying worsted wool fabric. When
reporting the annual dollar value and quantity of imported qualifying
worsted wool fabric of the kind described in subheading 9902.51.16 of
the 2014 HTS, an eligible person may either have manufactured the wool
on its own behalf or had another person manufacture the wool on behalf
of the eligible person, provided the eligible person owned the wool at
the time of manufacture.
Sec. 1471.14 Wool yarn, wool fiber, and wool top duty compensation
payment.
(a) Definitions. In this section the following definitions apply:
(1) Duty. The term ``duty'' means the duty rate codified in the HTS
for a year that is applicable to qualifying wool of the kind described
in subheadings 9902.51.13 and 9902.51.14 of the 2014 HTS.
(2) Eligible person. The term ``eligible person'' means a
manufacturer (or a successor-in-interest to the manufacturer) in the
U.S. or in a Foreign Trade Zone authorized under the Foreign-Trade
Zones Act of 1934 (19 U.S.C. 81a-81u) that, during the
[[Page 68880]]
calendar year immediately preceding the payment, imported qualifying
wool and manufactured the qualifying wool directly or had another
person manufacture the qualifying wool, providing the eligible person
owned the qualifying wool at the time it was manufactured.
(3) Qualifying wool. The term ``qualifying wool'' means imported
wool yarn of the kind described in subheading 9902.51.13 of the 2014
HTS or imported wool fiber or wool top of the kind described in
subheading 9902.51.14 of the 2014 HTS, that, during the calendar year
immediately preceding the payment, was imported, either directly or
indirectly, by an eligible person (or a successor-in-interest) into the
U.S. and manufactured by the eligible person in the U.S.
(4) Successor-in-interest. The term ``successor-in-interest'' means
a person that is eligible to claim a payment under this section as if
the person were the original eligible manufacturer, without regard to
section 3727, title 31, United States Code. A person may succeed to the
status of the successor-in-interest to the eligible person and become
eligible for the payment because of--
(i) An assignment of the claim;
(ii) An assignment of the eligible person's right to manufacture
under the same trade name; or
(iii) A reorganization of the eligible person.
(b) Import duties. The duties on imports of qualifying wool were
suspended in their entirety in section 503 of the Trade and Development
Act of 2000. The suspension of the duties for both HTS subheadings of
qualifying wool was extended through December 31, 2014. These duties
were reinstated as of January 1, 2015.
(c) Duty compensation payment--(1) Calculation of payment. The duty
compensation payment of an eligible person will be established by
calculating, as provided in paragraphs (c)(2) through (4) of this
section, the savings that would have been realized by the eligible
person for imports of qualifying wool had the duty suspension been in
effect.
(2) Savings for each subheading. The savings realized by an
eligible person for imports of qualifying wool under a HTS subheading
covered by this section shall be obtained by multiplying:
(i) The reported dollar value of imports under a HTS subheading
during the calendar year immediately preceding the payment; and
(ii) The duty applicable to that HTS subheading in the calendar
year preceding the payment, converted to numeric value.
(3) Sum of subheading savings. The product obtained in paragraph
(c)(2) of this section for imports of qualifying wool previously
described under each HTS subheading shall be added to the savings
obtained for imports under the other HTS subheading (as applicable).
(4) Duty compensation payment amount. The sum obtained in paragraph
(c)(3) of this section shall equal the annual duty compensation payment
for the eligible person for the applicable calendar year.
(d) Annual affidavit required--(1) In general. An eligible person
applying for a payment under this section shall comply with all
applicable reporting requirements described in this section and Sec.
1471.10.
(2) Specific business information--(i) Imports and production. An
eligible person shall, for the calendar year immediately preceding the
payment, report the actual dollar value and the actual quantity of:
(A) Imports into the U.S. of qualifying wool by the eligible
person; and
(B) Such qualifying wool that was manufactured in the U.S. by the
eligible person.
(ii) Direct and indirect importers--(A) In general. Eligible
persons that import qualifying wool through a third party broker are
considered to be indirect importers of the qualifying wool. Persons
that directly import qualifying wool and pay the import duty for such
wool are considered to be direct importers of the qualifying wool.
(B) Reported dollar value. Eligible persons must state in their
annual affidavit whether, in the calendar year immediately preceding
the payment, they were direct or indirect importers, and the dollar
value of the imported qualifying wool. The reported dollar value of
imports by indirect importers will be subject to a 10% reduction.
(C) Affirmation. An eligible person shall annually affirm in the
affidavit that, in the calendar year immediately preceding the payment,
the eligible person:
(1) Directly or indirectly imported the qualifying wool into the
U.S.;
(2) Manufactured the qualifying wool in the U.S.; and
(3) Imported qualifying wool from the country of origin identified
in the affidavit.
(iii) Import documentation. Eligible persons must maintain
supporting documentation for the amounts reported on their affidavits
and shall provide copies of such supporting documentation upon the
request of FAS.
(3) Manufacture of qualifying wool. When reporting the annual
dollar value and quantity of imported qualifying wool, and the annual
dollar value and quantity of the qualifying wool that was manufactured,
an eligible person may either have manufactured the qualifying wool on
its own behalf or had another person manufacture the qualifying wool,
provided the eligible person owned the qualifying wool at the time of
manufacture.
Robert Ibarra,
Executive Vice President, Commodity Credit Corporation.
In concurrence with:
Daniel Whitley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2021-25982 Filed 12-3-21; 8:45 am]
BILLING CODE 3410-10-P
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</html>Indexed from Federal Register on December 6, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.