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Proposed Rule2022-24108

Harmonized Tariff Schedule Numbers for the Paper and Paper-Based Packaging Products

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Published

November 7, 2022

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This proposal invites comments on updates to the Harmonized Tariff Schedule (HTS) numbers for paper and paper-based packaging products in the Paper and Paper-Based Packaging Promotion, Research, and Information Order (Order). In addition, this action proposes new language that allows assessment collection to continue even if HTS numbers change in the future. The Paper and Packaging Board (Board) administers the Order with oversight by the U.S. Department of Agriculture (USDA).

Full Text

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<title>Federal Register, Volume 87 Issue 214 (Monday, November 7, 2022)</title>
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[Federal Register Volume 87, Number 214 (Monday, November 7, 2022)]
[Proposed Rules]
[Pages 66960-66963]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24108]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1222

[Doc. No. AMS-SC-22-0050]

Harmonized Tariff Schedule Numbers for the Paper and Paper-Based
Packaging Products

AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on updates to the Harmonized
Tariff Schedule (HTS) numbers for paper and paper-based packaging
products in the Paper and Paper-Based Packaging Promotion, Research,
and Information Order (Order). In addition, this action proposes new
language that allows assessment collection to continue even if HTS
numbers change in the future. The Paper and Packaging Board (Board)
administers the Order with oversight by the U.S. Department of
Agriculture (USDA).

DATES: Comments must be received by December 7, 2022.

ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. All comments must be submitted through
the Federal e-rulemaking portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> and
should reference the document number and the date and page number of
this issue of the Federal Register. All comments submitted in response
to this proposed

[[Page 66961]]

rule will be included in the rulemaking record and will be made
available to the public. Please be advised that the identity of the
individuals or entities submitting comments will be made public on the
internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT: Marlene Betts, Marketing Specialist,
or Alexandra Caryl, Branch Chief, Mid-Atlantic Region Branch, Market
Development Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 20250-
0244; Telephone: (202) 720-5057; or Email: <a href="/cdn-cgi/l/email-protection#7b361a09171e151e55391e0f0f083b0e081f1a551c140d"><span class="__cf_email__" data-cfemail="2d604c5f41484348036f4859595e6d585e494c034a425b">[email&#160;protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#c889a4adb0a9a6acbaa9e68ba9bab1a488bdbbaca9e6afa7be"><span class="__cf_email__" data-cfemail="256449405d444b4157440b6644575c4965505641440b424a53">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: This proposal is issued under the Order (7
CFR part 1222). 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. Agricultural Marketing Service (AMS) has assessed
the impact of this proposed rule on Indian tribes and determined that
this rulemaking would not have tribal implications that require
consultation under Executive Order 13175. AMS hosts a quarterly
teleconference with tribal leaders where matters of mutual interest
regarding the marketing of agricultural products are discussed.
Information about the proposed changes to the regulations will be
shared during an upcoming quarterly call, and tribal leaders will be
informed about the proposed revisions to the regulation and the
opportunity to submit comments. AMS will work with the USDA Office of
Tribal Relations to ensure meaningful consultation is provided as
needed with regards to this change to the Order.

Executive Order 12988

This proposal 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, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The 1996 Act provides that the
district court of the United States for any district in which the
petitioner resides or conducts business shall have the jurisdiction to
review a final ruling on the petition if the petitioner files a
complaint for that purpose not later than 20 days after the date of the
entry of USDA's final ruling.

Background

The Paper and Paper-Based Packaging Promotion, Research, and
Information Order (Order) took effect in January 2014 (79 FR 3696), and
assessment collection began in March 2014 for paper and paper-based
packaging. The program is funded by assessments on manufacturers and
importers of 100,000 short tons or more of paper and paper-based
packaging per year. The assessments are used for projects to promote
paper and paper-based packaging. This proposed rule invites comments on
updates to the Harmonized Tariff Schedule (HTS) numbers for paper and
paper-based packaging products. This action also proposes the addition
of verbiage that allows the collection of assessments to continue even
if HTS numbers change in the future. Updates to the HTS numbers and the
additional verbiage are necessary to ensure that importers are being
assessed appropriately.
This change would ensure that importers are being assessed on the
same products as domestic manufacturers. The proposed changes were
recommended by the Board at its meeting on June 21, 2022. The Board was
unanimously in favor of this recommendation. AMS agrees to propose the
updates to the HTS numbers.

Update HTS Numbers

Sections 1222.46(p) of the Order allows for the Board to recommend
amendments to the Order as the Board considers appropriate. The Board
reviewed the current HTS numbers after noting that several changes made
by the U.S. International Trade Commission (USITC) are not reflected in
the Order's current HTS numbers. Therefore, this action proposes to
update the Order's HTS numbers, bringing them in-line with the most
current HTS numbers as provided by the USITC.\1\ In addition, this
action proposes additional verbiage that allows the collection of
assessments to continue even if HTS numbers change in the future.
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\1\ <a href="https://hts.usitc.gov/current">https://hts.usitc.gov/current</a> Chapter 48.
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Section 1222.52(e) would be updated to include language that would
allow the Board to continue to collect assessments in the event the
USITC makes future changes to any HTS number by merely replacing a
previous number. In addition, the list of HTS numbers in the table for
assessments on importers of paper and paper-based packaging have all
been reviewed and updated in the Order to coincide with the most
current HTS numbers as provided by USITC.

Initial Regulatory Flexibility Act Analysis

In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS has considered the economic impact of this action on
small entities that would be affected by this rule. The purpose of the
RFA is to fit regulatory action to scale of businesses subject to such
action so that small businesses will not be disproportionately
burdened. The Small Business Administration defines small agricultural
service firms as those having annual receipts of no more than $30
million (13 CFR part 121). Manufacturers and importers would be
considered agricultural service firms.
According to the Board, there are approximately 50 manufacturers in
the United States that produce the types of paper and paper-based
packaging covered under the Order. Using an average price of $1,165 per
short ton,\2\

[[Page 66962]]

a manufacturer who produces less than about 25,760 short tons of paper
and paper-based packaging per year would be considered a small entity.
The Board estimates that no manufacturers produced less than 25,760
short tons in 2021; thus, no domestic manufacturers would be considered
small businesses.
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\2\ No domestic market pricing information for paper and paper-
based packaging was publicly available; instead, average prices were
estimated using export data from the U.S. Census Bureau.
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Based on U.S. Customs and Border Protection (Customs) data, there
were 3,020 importers of paper and paper-based packaging in 2021. Of
these, 34 importers, or 1 percent, had annual receipts of more than $30
million of paper and paper-based packaging. Thus, most importers would
be considered small entities.
The proposed rule would update the Order's HTS numbers, bringing
them in-line with the most current HTS numbers as provided by the
USITC. In addition, this action proposes additional verbiage that
allows the Board to continue to collect assessments even if HTS numbers
change in the future.
This rulemaking does not impose additional recordkeeping
requirements on manufacturers and importers of paper and paper-based
packaging. There are no Federal rules that duplicate, overlap, or
conflict with this proposed rule. In accordance with OMB regulations (5
CFR part 1320) that implements 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 previously
approved under OMB control number 0581-0093. This rulemaking does not
result in a change to the information collection and recordkeeping
requirements previously approved.
Regarding outreach efforts, the Board discussed this action during
Board meetings in 2022. The Board members unanimously approved the
changes to the HTS numbers to bring them in accordance with the USITC
numbers and ensure that assessments on domestic manufacturers are the
same as assessments on imports. In addition, all of the Board's
meetings are open to the public and interested persons are invited to
participate and express their views.
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 or citizen access to Government information and
services, and for other purposes.
We have performed this initial RFA analysis regarding the impact of
the proposed action on small entities and we invite comments concerning
the potential effects of this action.
USDA has determined that this proposed rule is consistent with and
would effectuate the purpose of the 1996 Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. All written comments received in response to
this proposed rule by the date specified will be considered prior to
finalizing this action.

List of Subjects in 7 CFR Part 1222

Administrative practice and procedure, Advertising, Labeling,
Marketing agreements, Reporting and recordkeeping requirements.

For the reasons set forth in the preamble, the Agricultural
Marketing Service proposed to amend 7 CFR part 1222 as follows:

PART 1222--PAPER AND PAPER-BASED PACKAGING PROMOTION, RESEARCH, AND
INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1222 continues to read as
follows:

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

0
2. In Sec. 1222.52, revise paragraph (e) to read as follows:

Sec. 1222.52 Assessment.

* * * * *
(e) Each importer of paper and paper-based packaging shall pay
through Customs to the Board an assessment on the paper and paper-based
packaging imported into the United States identified in the Harmonized
Tariff Schedule of the United States (HTSUS) number listed in the
following table. In the event that any HTSUS number subject to
assessment is changed and such change is merely a replacement of a
previous number and has no impact on the description of the paper and
paper-based packaging involved, assessments will continue to be
collected based on the new number.

------------------------------------------------------------------------
Assessment
Paper and paper-based packaging $/kg
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4802.54.1000............................................... $0.000386
4802.54.3100............................................... 0.000386
4802.54.5000............................................... 0.000386
4802.54.6100............................................... 0.000386
4802.55.1000............................................... 0.000386
4802.55.2000............................................... 0.000386
4802.55.4000............................................... 0.000386
4802.55.6000............................................... 0.000386
4802.55.7020............................................... 0.000386
4802.55.7040............................................... 0.000386
4802.56.1000............................................... 0.000386
4802.56.2000............................................... 0.000386
4802.56.4000............................................... 0.000386
4802.56.6000............................................... 0.000386
4802.56.7020............................................... 0.000386
4802.56.7050............................................... 0.000386
4802.56.7090............................................... 0.000386
4802.57.1000............................................... 0.000386
4802.57.2000............................................... 0.000386
4802.57.4000............................................... 0.000386
4802.57.4020............................................... 0.000386
4802.57.4040............................................... 0.000386
4802.57.4090............................................... 0.000386
4802.58.1000............................................... 0.000386
4802.58.2020............................................... 0.000386
4802.58.2040............................................... 0.000386
4802.58.2080............................................... 0.000386
4802.58.5000............................................... 0.000386
4802.58.6020............................................... 0.000386
4802.58.6040............................................... 0.000386
4802.61.1000............................................... 0.000386
4802.61.2000............................................... 0.000386
4802.61.3110............................................... 0.000386
4802.61.3135............................................... 0.000386
4802.61.3191............................................... 0.000386
4802.61.5000............................................... 0.000386
4802.61.6020............................................... 0.000386
4802.61.6040............................................... 0.000386
4802.62.1000............................................... 0.000386
4802.62.2000............................................... 0.000386
4802.62.3000............................................... 0.000386
4802.62.5000............................................... 0.000386
4802.62.6120............................................... 0.000386
4802.62.6140............................................... 0.000386
4802.69.1000............................................... 0.000386
4802.69.2000............................................... 0.000386
4802.69.3000............................................... 0.000386
4804.11.0000............................................... 0.000386
4804.19.0000............................................... 0.000386
4804.21.0000............................................... 0.000386
4804.29.0000............................................... 0.000386
4804.31.4020............................................... 0.000386
4804.31.4040............................................... 0.000386
4804.31.6000............................................... 0.000386
4804.39.4020............................................... 0.000386
4804.39.4049............................................... 0.000386
4804.39.6020............................................... 0.000386
4804.39.6040............................................... 0.000386
4804.41.2000............................................... 0.000386
4804.41.4000............................................... 0.000386
4804.42.0010............................................... 0.000386
4804.42.0020............................................... 0.000386
4804.42.0030............................................... 0.000386
4804.42.0040............................................... 0.000386
4804.42.0050............................................... 0.000386
4804.49.0000............................................... 0.000386
4804.51.0000............................................... 0.000386
4804.52.0010............................................... 0.000386
4804.52.0020............................................... 0.000386
4804.52.0030............................................... 0.000386
4804.52.0040............................................... 0.000386
4804.52.0050............................................... 0.000386
4804.59.0000............................................... 0.000386
4805.11.0000............................................... 0.000386
4805.12.1000............................................... 0.000386
4805.12.2000............................................... 0.000386
4805.19.1000............................................... 0.000386
4805.19.2000............................................... 0.000386
4805.24.5000............................................... 0.000386
4805.24.7000............................................... 0.000386
4805.24.9000............................................... 0.000386
4805.25.0000............................................... 0.000386
4805.91.1010............................................... 0.000386
4805.91.9000............................................... 0.000386

[[Page 66963]]

4805.92.4010............................................... 0.000386
4805.92.4030............................................... 0.000386
4805.93.4010............................................... 0.000386
4805.93.4030............................................... 0.000386
4805.93.4050............................................... 0.000386
4805.93.4060............................................... 0.000386
4807.00.9100............................................... 0.000386
4807.00.9400............................................... 0.000386
4810.13.1120............................................... 0.000386
4810.13.1140............................................... 0.000386
4810.13.1900............................................... 0.000386
4810.13.2010............................................... 0.000386
4810.13.2090............................................... 0.000386
4810.13.5000............................................... 0.000386
4810.13.6000............................................... 0.000386
4810.13.7020............................................... 0.000386
4810.13.7040............................................... 0.000386
4810.14.1120............................................... 0.000386
4810.14.1140............................................... 0.000386
4810.14.1900............................................... 0.000386
4810.14.2010............................................... 0.000386
4810.14.2090............................................... 0.000386
4810.14.5000............................................... 0.000386
4810.14.6000............................................... 0.000386
4810.14.7020............................................... 0.000386
4810.14.7040............................................... 0.000386
4810.19.1100............................................... 0.000386
4810.19.1900............................................... 0.000386
4810.19.2010............................................... 0.000386
4810.19.2090............................................... 0.000386
4810.22.1000............................................... 0.000386
4810.22.5044............................................... 0.000386
4810.22.5080............................................... 0.000386
4810.22.6000............................................... 0.000386
4810.22.7020............................................... 0.000386
4810.22.7040............................................... 0.000386
4810.29.1025............................................... 0.000386
4810.29.1035............................................... 0.000386
4810.29.5000............................................... 0.000386
4810.29.6000............................................... 0.000386
4810.29.7020............................................... 0.000386
4810.29.7025............................................... 0.000386
4810.29.7035............................................... 0.000386
4810.31.1020............................................... 0.000386
4810.31.1040............................................... 0.000386
4810.31.3000............................................... 0.000386
4810.31.6500............................................... 0.000386
4810.32.1020............................................... 0.000386
4810.32.1040............................................... 0.000386
4810.32.1060............................................... 0.000386
4810.32.3000............................................... 0.000386
4810.32.6500............................................... 0.000386
4810.39.1200............................................... 0.000386
4810.39.1400............................................... 0.000386
4810.39.3000............................................... 0.000386
4810.39.6500............................................... 0.000386
4810.92.1225............................................... 0.000386
4810.92.1235............................................... 0.000386
4810.92.6525............................................... 0.000386
4810.92.6535............................................... 0.000386
4810.99.1050............................................... 0.000386
4810.99.6500............................................... 0.000386
4811.51.2010............................................... 0.000386
4811.51.2020............................................... 0.000386
4811.51.2030............................................... 0.000386
4811.59.4020............................................... 0.000386
4811.90.8030............................................... 0.000386
------------------------------------------------------------------------

* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-24108 Filed 11-4-22; 8:45 am]
BILLING CODE P

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