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Rule2023-04610

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

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Published

March 9, 2023

Effective

March 10, 2023

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This final rule updates 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 adds 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 Agricultural Marketing Service (AMS).

Full Text

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<title>Federal Register, Volume 88 Issue 46 (Thursday, March 9, 2023)</title>
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[Federal Register Volume 88, Number 46 (Thursday, March 9, 2023)]
[Rules and Regulations]
[Pages 14484-14486]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04610]

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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: Final rule.

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SUMMARY: This final rule updates 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 adds 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 Agricultural Marketing Service (AMS).

DATES: Effective March 10, 2023.

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#85c8e4f7e9e0ebe0abc7e0f1f1f6c5f0f6e1e4abe2eaf3"><span class="__cf_email__" data-cfemail="6924081b050c070c472b0c1d1d1a291c1a0d08470e061f">[email&#160;protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#3f7e535a475e515b4d5e117c5e4d46537f4a4c5b5e11585049"><span class="__cf_email__" data-cfemail="e6a78a839e8788829487c8a587949f8aa693958287c8818990">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: This final rule 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. AMS has assessed the impact of this final 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 changes to the regulations will be
shared during an upcoming quarterly call, and Tribal leaders will be
informed about the revisions to the regulation. AMS will work with the
Office of Tribal Relations to ensure meaningful consultation is
provided as needed with regards to this change to the Order.

Executive Order 12988

This final 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 U.S. Department of
Agriculture (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

[[Page 14485]]

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 final rule updates the Harmonized
Tariff Schedule (HTS) numbers for paper and paper-based packaging
products. This action also adds 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.
These changes ensure that importers are being assessed on the same
products as domestic manufacturers. These changes were recommended by
the Board at its meeting on June 21, 2022. The Board was unanimously in
favor of these recommendations. AMS agrees to update 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 updates 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 adds
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) is updated to include language that allows 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 are all updated in the
Order to coincide with the most current HTS numbers as provided by
USITC.

Final Regulatory Flexibility Act Analysis

In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the final rule on
small entities. Accordingly, AMS has considered the economic impact of
this action on such entities.
The purpose of the RFA is to fit regulatory 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\ 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 final rule updates the Order's HTS numbers, bringing them in-
line with the most current HTS numbers as provided by the USITC. In
addition, this action adds 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 final 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.
AMS has determined that this final rule is consistent with and
would effectuate the purpose of the 1996 Act.
A proposed rule concerning this action was published in the Federal
Register on November 7, 2022 (87 FR 66960). A 30-day comment period
ending December 7, 2022, was provided to allow interested person to
respond to the proposal. The proposal was made available through the
internet by AMS and the Office of the Federal Register. No comments
were received. Accordingly, no changes were made to the rule as
proposed.

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 amends 7 CFR part 1222 as follows:

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

0
1. The authority citation for 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.

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[[Page 14486]]

(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.

Table 1 to Sec. 1222.52(e)
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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
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
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* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-04610 Filed 3-8-23; 8:45 am]
BILLING CODE 3410-02-P

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