Proposed Rule2024-15138
Paper and Paper-Based Packaging Promotion, Research and Information Order; Clarifying Changes
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Published
July 15, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
The Agricultural Marketing Service (AMS) proposes multiple clarifying amendments to the Paper and Paper-Based Packaging Promotion, Research and Information Order (Order). The amendments include revising the definition of importer; adding a definition for partnership; clarifying the nominations process; clarifying language about in person and electronic voting for any Board meetings; updating the timing of financial reporting; and revising requirements for when exemptions can be requested. These actions would modify language in the Order to bring it up to date with current industry practices.
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[Federal Register Volume 89, Number 135 (Monday, July 15, 2024)]
[Proposed Rules]
[Pages 57368-57372]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15138]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 /
Proposed Rules
[[Page 57368]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1222
[Doc. No. AMS-SC-23-0080]
Paper and Paper-Based Packaging Promotion, Research and
Information Order; Clarifying Changes
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Agricultural Marketing Service (AMS) proposes multiple
clarifying amendments to the Paper and Paper-Based Packaging Promotion,
Research and Information Order (Order). The amendments include revising
the definition of importer; adding a definition for partnership;
clarifying the nominations process; clarifying language about in person
and electronic voting for any Board meetings; updating the timing of
financial reporting; and revising requirements for when exemptions can
be requested. These actions would modify language in the Order to bring
it up to date with current industry practices.
DATES: Comments must be received by August 14, 2024.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments may be mailed to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax:
(202) 720-8938; or submitted electronically by Email:
<a href="/cdn-cgi/l/email-protection#e2b1afccb7b1a6a3ccafb0b2cca3afb1ccafa6a6a18d8f8f878c96a297918683cc858d94"><span class="__cf_email__" data-cfemail="46150b6813150207680b141668070b15680b020205292b2b232832063335222768212930">[email protected]</span></a>; or via Federal e-rulemaking portal
at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments 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 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 the comments will be made public on the internet at
the address provided above. A plain language summary of this proposed
rule is available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> in the docket for this
rulemaking.
FOR FURTHER INFORMATION CONTACT: Samantha Mareno, Agricultural
Marketing Specialist, Market Development Division, Specialty Crops
Program, Agricultural Marketing Service, U.S. Department of
Agriculture, 1400 Independence Avenue SW, Room 1406-S, STOP 0244,
Washington, DC 20250-0244; Telephone: (720) 827-4907; or Email:
<a href="/cdn-cgi/l/email-protection#4e1d2f232f203a262f60032f3c2b20210e3b3d2a2f60292138"><span class="__cf_email__" data-cfemail="c192a0aca0afb5a9a0ef8ca0b3a4afae81b4b2a5a0efa6aeb7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This proposed rule affecting the Order (7
CFR part 1222) is authorized by the Commodity Promotion, Research, and
Information Act of 1996 (Act) (7 U.S.C. 7411-7425).
Executive Orders 12866, 13563 and 14094
AMS is issuing this proposed rule in conformance with Executive
Orders 12866, 13563, and 14094. 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. Executive Order 14094 reaffirms,
supplements, and updates Executive Order 12866 and further directs
agencies to solicit and consider input from a wide range of affected
and interested parties through a variety of means. This proposed rule
is not a significant regulatory action within the meaning of Executive
Order 12866. Accordingly, this action has not been reviewed by the
Office of Management and Budget under section 6 of the Executive Order.
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 proposed rule
on Indian Tribes and determined that this proposed rule 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 regard to these proposed changes 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 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 Act (7 U.S.C. 7418), a person subject to
an order may file a written petition with the 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 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.
[[Page 57369]]
Background
Under the Order, which became effective on January 23, 2014, the
Paper and Packaging Board (Board), with oversight by USDA, administers
a nationally coordinated program of research, promotion and information
designed to strengthen the paper and paper-based packaging industry.
The program covers four types of paper and paper-based packaging--
printing and writing paper (used to make products for printing, writing
and other communication purposes), kraft packaging paper (used for
products like grocery bags and sacks), containerboard (used to make
corrugated boxes, shipping containers and related products), and
paperboard (used for food and beverage packaging, tubes, and other
miscellaneous products). The program is financed by assessments on
domestic manufacturers and importers of paper and paper-based
packaging.
This proposed rulemaking would make multiple clarifying amendments
to the Order. These amendments include revising the definition of
importer; adding a definition for partnership; clarifying the
nomination process; clarifying language about in person and electronic
voting for any Board meetings; updating the timing of financial
reporting; and revising requirements concerning when exemptions may be
requested. The Board, which is composed of domestic manufacturers from
across the country and importers, unanimously recommended the proposed
changes to the Order on August 19, 2023. This action would modify
language in the Order to bring it up to date with current industry
practices.
Board Recommendation To Revise Order
In subpart A of the Order, several sections would be revised to
clarify terms for the Board and the paper and paper-based packaging
industry. Section 1222.7 currently defines fiscal period and marketing
year. Proposed section 1222.7 would revise fiscal period to fiscal year
as the term is better understood by the industry. The definition of
importer in Sec. 1222.8 would be revised to further clarify that
importers are persons who import paper and paper-based packaging from
outside the United States, that is subsequently released from custody
by U.S. Customs and Border Protection (Customs) and introduced into the
stream of commerce into the United States. Specifically, those persons
are included who hold title of the foreign manufactured paper and
paper-based packaging. The proposed revision is similar to the current
definition of eligible importer in Sec. 1222.101 (f) of Subpart B--
Referendum Procedures.
Sections 1222.12 and 1222.13 currently include the term produce and
producer respectively in the definition of manufacture and
manufacturer. The term produce and producer are not used in the paper
and paper-based packaging industry. Therefore, this proposed rule would
remove these terms from the definition of manufacture and manufacturer.
Lastly, a new term for partnership would be added at Sec. 1222.19
to state that a partnership includes, but is not limited to, spouses
and joint ventures. This change is intended to clarify who is
responsible for paying assessments. With this change, the existing
sections 1222.19 through 1222.29 would be renumbered.
Section 1222.41 currently outlines the Board nominations and
appointments process. Section 1222.41(c)(1) would be updated to clarify
the process for conducting outreach and specifically issue a call for
nominations to all current manufacturers and importers who have paid
assessments during the prior fiscal year. Furthermore, section
1222.41(c)(4) and (c)(5) would be amended to remove repetitive
language. Lastly, section 1222.41(c)(10) would be changed to specify
that no two members shall be employed by a single manufacturer or
importer that pays assessments under the Order to avoid confusion as to
who can serve on the Board.
Section 1222.43(a) allows the Secretary to remove a Board member or
employee for failure or refusal to perform their duties, per the
Board's recommendation. This would be revised to remove the employee
clause to be consistent with language in other research and promotion
orders.
Section 1222.44 outlines the Board's procedures for conducting
Board meetings. Section 1222.44(c) currently states that votes shall be
cast in person at an assembled meeting. Additionally, section 1222.44
(d) allows for other means of voting in lieu of voting at an assembled
meeting. Both sections would be revised to include options for
electronic voting, or other means.
Section 1222.47 outlines prohibited activities for the Board.
Section 1222.47(c) currently states no program, plan or project
including advertising shall be false, misleading, or disparaging to
another agriculture commodity. To be consistent in writing style, the
proposed language would be modified to state any program, plan or
project including advertising that is false, misleading, or disparaging
to another agriculture commodity. This section would be updated to
ensure clarity in wording.
Section 1222.50(i) outlines the operating monetary reserve for the
Board and states that the funds in the reserve may not exceed one
fiscal year's budget of expenses. This would be revised to increase the
funds in the reserve so they may not exceed two fiscal years, which is
consistent with other research and promotion orders.
Section 1222.51(b) describes when financial statements are to be
submitted to the Department. The current timeframe is 30 days after the
time period to which it applies, which is too restrictive because the
Board reports financial statements on a quarterly basis. Therefore,
this paragraph would be updated to specify that the financial
statements are to be submitted quarterly and no later than 70 days
after the period to which it applies.
Section 1222.51(c) refers to the annual financial statement that is
submitted to the Department. Currently, the annual financial statement
is due to the Department within 90 days after the end of the fiscal
year. The Board has had difficulty in meeting this short deadline.
Therefore, this rule would extend the timeframe to no later than 120
days to allow the Board more time to submit the statement to the
Department.
Section 1222.52(e) currently states that importers of paper and
paper-based packaging shall pay assessments through Customs to the
Board. Customs does not currently collect import assessments for the
Board and therefore, paragraph (e) would be revised by deleting
``through Customs'', instead stating that each importer shall pay their
assessment to the Board.
Section 1222.52(f) would also be revised by deleting the current
language stating Customs collects assessments. Since Customs does not
collect the assessment, the paragraph would be revised to state that
each importer is responsible for paying assessments directly to the
Board.
Section 1222.53(a)(1) currently specifies the minimum quantity
necessary to be eligible for an exemption from assessments and requires
manufacturers to apply for an exemption prior to the start of the
marketing year. The rule would remove this requirement, allowing them
to apply for an exemption at any time during a marketing year, not just
before the year starts.
Section 1222.53(a)(2) (iii) provides that importers' assessments
are collected by Customs and the Board shall refund the importer who
has filed for exemption. Because Customs doesn't
[[Page 57370]]
collect assessments, this section would be updated to reflect that the
importer would pay the Board directly.
Section 1222.53(a)(5) currently details how the quantity of paper
and paper-based packaging counts towards an exemption. This paragraph
would be revised to ensure that in determining whether a manufacturer
or import qualifies for the exemption, the combined quantity of all
paper and paper-based packaging manufactured or imported during a
marketing year shall count towards the 100,000 short ton exemption.
Section 1222.81(2) refers to the frequency of referenda and
outlines the criteria for continuation. This section would be updated
to clarify that only eligible domestic manufacturers or eligible
importers are included in the referendum voting. This change does not
change who can vote and does not change voting restrictions.
Section 1222.82(b) currently states that the Secretary has the
right to suspend or terminate the program whenever it is favored by the
industry. This section would be updated to make the language used more
concise to avoid confusion by the industry.
Definitions in Section 1222.101 would be updated to be consistent
with terms defined in Subpart A. Specifically, paragraph (e) currently
includes producer in the definition for eligible domestic manufacturer.
This section would be revised to remove the word producer. Paragraph
(i) currently includes the term produce in the definition of
manufacture and would be revised to remove the term produce from the
definition.
Lastly, section 1222.102(a) currently outlines the voting
eligibility of domestic manufacturers and importers. This section would
be revised to include clarifying language to avoid confusion in the
eligibility.
Initial Regulatory Flexibility Act Analysis
Pursuant to the requirements set forth in 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. Manufacturers and importers
would be considered agricultural service firms. The Small Business
Administration defines small agricultural service firms as those having
annual receipts of no more than $30 million (13 CFR part 121).
According to the Board, there are approximately 47 manufacturers in
the United States that manufacture the types of paper and paper-based
packaging covered under the Order. Using an average price of $1,350 per
short ton,\1\ a manufacturer who manufactures less than 22,220 short
tons of paper and paper-based packaging per year would be considered a
small entity. The Board estimated that no entity manufactured less than
22,220 short tons in 2022; thus, no domestic manufacturers would be
considered small businesses.
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\1\ 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.
---------------------------------------------------------------------------
Based on Customs data, there were 3,272 importers of paper and
paper-based packaging in 2022. Of these, 40 importers, or 1 percent,
had annual receipts of more than $30 million of paper and paper-based
packaging. Thus, the majority of importers would be considered small
entities.
This proposed rule would make multiple clarifying changes to the
Order. The changes include revising the definition of importer; adding
a definition for partnership; clarifying the nominations process;
clarifying language about in person and electronic voting for any Board
meetings; updating the timing of financial reporting; and revising
requirements concerning when exemptions will be requested.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
that are imposed by the Order have been approved previously under OMB
control number 0581-0093. This proposed rule would not result in a
change to the information collection and recordkeeping requirements
previously approved and would impose no additional reporting and
recordkeeping burden on domestic manufacturers and importers of paper
and paper-based packaging.
As with all Federal research and promotion programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. AMS has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
AMS is committed to complying with the E-Government Act to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to government information
and services, and for other purposes.
Regarding alternatives, the Board considered not making the
clarifying changes to the Order and leaving it as it is currently. The
Board decided against leaving the Order unchanged as confusion would
continue and potentially worsen over time. Therefore, that alternative
was rejected.
Regarding outreach efforts, the Board determined that making these
proposed changes would clarify the issues and answer questions that
have arisen over the last eight years and would help resolve similar
questions in the future. This proposal was discussed by the Board in
June and November 2022, and the full Board unanimously recommended the
changes on August 19, 2023. AMS has performed this initial RFA analysis
regarding the impact of this action on small entities and invites
comments concerning potential effects of this action.
While this proposed rule as set forth below has not yet received
the approval of AMS, it has been determined that it is consistent with
and would effectuate the purposes of the Order. 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, Consumer
information, Marketing agreements, Paper and paper-based packaging
promotion, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 1222 as follows:
PART 1222--PAPER AND PAPER-BASED 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. 1222.7, revise to read as follows:
Sec. 1222.7 Fiscal year and marketing year.
Fiscal year and marketing year means the 12-month period ending on
December 31 or such other period as recommended by the Board and
approved by the Secretary.
0
3. In Sec. 1222.8, revise to read as follows:
[[Page 57371]]
Sec. 1222.8 Importer.
Importer means any person who imports paper and paper-based
packaging from outside the United States for sale in the United States
as a principal or as an agent, broker, or consignee of any person who
manufactures paper and paper-based packaging outside the United States
for sale in the United States, and who is listed in the import records
as the importer of record for such paper and paper-based packaging.
Importation occurs when paper and paper-based packaging manufactured
outside of the United States is released from custody by Customs and
introduced into the stream of commerce in the United States. Included
are persons who hold title to foreign-manufactured paper and paper-
based packaging immediately upon release by Customs, as well as any
persons who act on behalf of others, as agents or brokers, to secure
the release of paper and paper-based packaging from Customs when such
paper and paper-based packaging is entered or withdrawn for use in the
United States.
0
4. In Sec. 1222.12, revise to read as follows:
Sec. 1222.12 Manufacture.
Manufacture means the process of transforming pulp into paper and
paper-based packaging.
0
5. In Sec. 1222.13, revise to read as follows:
Sec. 1222.13 Manufacturer.
Manufacturer means any person who manufactures paper and paper-
based packaging in the United States.
Sec. Sec. 1222.19 through 1222.29 [Redesignated as Sec. Sec. 1222.20
through 1222.30]
0
6. Redesignate Sec. Sec. 1222.19 through 1222.29 as Sec. Sec. 1222.20
through 1222.30, respectively.
0
7. Add new Sec. 1222.19 to read as follows:
Sec. 1222.19 Partnership.
Partnership includes, but is not limited to:
(a) Spouses who have title to, or leasehold interest in, a paper
and paper-based packaging manufacturing entity as tenants in common,
joint tenants, tenants by the entirety, or, under community property
laws, as community property; and
(b) So called ``joint ventures'' wherein one or more parties to an
agreement, informal or otherwise, contributed land, facilities,
capital, labor, management, equipment, or other services, or any
variation of such contributions by two or more parties, that results in
the manufacturing or importation of paper and paper-based packaging and
the authority to transfer title to the paper and paper-based packaging
so manufactured or imported.
0
8. In Sec. 1222.41, revise paragraphs (c)(1), (c)(4), (c)(5) and
(c)(10) to read as follows:
Sec. 1222.41 Nominations and appointments.
* * * * *
(c) * * *
(1) The Board shall issue a call for nominations and conduct
outreach to all current manufacturers and importers who paid
assessments during the prior fiscal year. Manufacturers and importers
may submit nominations to the Board;
* * * * *
(4) For domestic seats allocated by region, domestic manufacturers
must manufacture paper and paper-based packaging in the region for
which they seek nomination. Nominees that manufacture in both regions
may seek nomination in one region of their choice;
(5) Nominees that are both a manufacturer and an importer may seek
nomination to the board either as a manufacturer or as an importer so
long as they meet the qualifications;
* * * * *
(10) No two members shall be employed by a single manufacturer or
importer that pays assessments under this Order; and,
* * * * *
0
9. In Sec. 1222.43, revised paragraph (a) to read as follows:
Sec. 1222.43 Removal and vacancies.
(a) The Board may recommend to the Secretary that a member be
removed from office if the member consistently fails or refuses to
perform his or her duties properly or engages in dishonest acts or
willful misconduct. If the Secretary determines that any person
appointed under this subpart consistently fails or refuses to perform
his or her duties properly or engages in acts of dishonesty or willful
misconduct, the Secretary shall remove the person from office. A person
appointed under this subpart may be removed by the Secretary if the
Secretary determines that the person's continued service would be
detrimental to the purposes of the Act.
* * * * *
0
10. In Sec. 1222.44, revise paragraphs (c) and (d) to read as follows:
Sec. 1222.44 Procedure.
* * * * *
(c) The Board and related committees may conduct meetings by any
means of communication available, electronic or otherwise, that
effectively assembles the required participants and facilitates open
communication. Eligible participants may vote by any means of
communication available, electronic or otherwise; provided that votes
cast are verifiable and that a quorum and other procedural requirements
are met.
(d) In lieu of voting at an assembled meeting and, when in the
opinion of the chairperson of the Board such action is considered
necessary, the Board may take action if supported by a majority of
members (unless a two-thirds majority is required under the Order) by
any means of communication available, electronic or otherwise. In that
event, all members must be notified and provided the opportunity to
vote. Any action so taken shall have the same force and effect as
though such action had been taken at an assembled meeting. All votes
shall be recorded in Board minutes.
* * * * *
0
11. In Sec. 1222.47, revise paragraph (c) to read as follows:
Sec. 1222.47 Prohibited activities.
* * * * *
(c) Any program, plan or project including advertising that is
false, misleading, or disparaging to another agricultural commodity.
Paper and paper-based packaging of all geographic origins shall be
treated equally.
0
12. In Sec. 1222.50, revise paragraph (i) to read as follows:
Sec. 1222.50 Budget and expenses.
* * * * *
(i) The Board may establish an operating monetary reserve and may
carry over to subsequent fiscal years excess funds in any reserve so
established: Provided, that, the funds in the reserve do not exceed two
fiscal year's budget of expenses. Subject to approval by the Secretary,
such reserve funds may be used to defray any expenses authorized under
this subpart.
* * * * *
0
13. In Sec. 1222.51, revise paragraphs (b) and (c) to read as follows:
Sec. 1222.51 Financial statements.
* * * * *
(b) Each quarterly financial statement shall be submitted to the
Department no later than 70 calendar days after the period to which it
applies.
(c) The Board shall submit to the Department an audited annual
financial statement no later than 120 calendar days after the end of
the fiscal year to which it applies.
0
14. In Sec. 1222.52, revise the introductory text of paragraph (e),
and paragraph (f) to read as follows:
[[Page 57372]]
Sec. 1222.52 Assessments.
* * * * *
(e) Each importer of paper and paper-based packaging shall pay 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.
* * * * *
(f) Each importer is responsible for paying the assessment directly
to the Board within 30 calendar days after the end of the quarter in
which the paper and paper-based packaging was imported.
* * * * *
0
15. Sec. 1222.53, revise paragraphs (a)(1), (2)(iii) and (5) to read
as follows:
Sec. 1222.53 Exemption from assessment.
(a) Minimum quantity exemption. (1) Manufacturers that manufacture
less than 100,000 short tons of paper and paper-based packaging in a
marketing year are exempt from paying assessments. Such manufacturers
must apply to the Board, on a form provided by the Board, for a
certificate of exemption. This is an annual exemption and manufacturers
must reapply each year. Such manufacturers shall certify that they will
manufacture less than 100,000 short tons of paper and paper-based
packaging during the marketing year for which the exemption is claimed.
Upon receipt of an application for exemption, the Board shall determine
whether an exemption may be granted. The Board may request past
manufacturing data to support the exemption request. The Board will
issue, if deemed appropriate, a certificate of exemption to the
eligible manufacturer. It is the responsibility of the manufacturer to
retain a copy of the certificate of exemption.
(2) * * *
(iii) The Board shall refund to such importers considered exempt
assessments that the importer paid to the Board no later than 60
calendar days after the Board receives such assessments. The Board will
stop refund of assessments to such importers who during the marketing
year import more than 100,000 short tons of paper and paper-based
packaging. These importers will be notified accordingly. No interest
shall be paid on the assessments collected by the Board.
* * * * *
(5) In calculating whether a manufacturer or importer qualifies for
an exemption, the combined quantity of all paper and paper-based
packaging manufactured or imported by the manufacturer or importer
during a marketing year shall count towards the 100,000 short-ton
exemption.
* * * * *
0
16. In Sec. 1222.81, revise paragraphs (b)(2) to read as follows:
Sec. 1222.81 Referenda.
* * * * *
(b) * * *
(2) Not later than seven years after this Order becomes effective
and every seven years thereafter, to determine whether manufacturers
and importers favor the continuation of the Order. The Order shall
continue if it is favored by a majority of manufacturers and importers
voting in the referendum who, during a representative period determined
by the Secretary, are each an eligible domestic manufacturer or an
eligible importer and who also represent a majority of the volume of
paper and paper-based packaging represented in the referendum;
* * * * *
0
17. In Sec. 1222.82, revise paragraph (b) to read as follows:
Sec. 1222.82 Suspension or termination.
* * * * *
(b) The Secretary shall suspend or terminate this subpart at the
end of the fiscal year whenever the Secretary determines that its
suspension or termination is favored by a majority of manufacturers and
importers voting in the referendum who, during a representative period
determined by the Secretary, are each an eligible domestic manufacturer
or an eligible importer and who also represent a majority of the volume
of paper and paper-based packaging represented in the referendum;
* * * * *
0
18. In Sec. 1222.101, revise paragraph (e) and (i) to read as follows:
Subpart B--Referendum Procedures
Sec. 1222.101 Definitions.
* * * * *
(e) Eligible domestic manufacturer means any person who is
currently a domestic manufacturer and who manufactured 100,000 short
tons or more of paper and paper-based packaging during the
representative period.
* * * * *
(i) Manufacture means the process of transforming pulp into paper
and paper-based packaging.
* * * * *
0
19. In Sec. 1222.102, revise paragraph (a) to read as follows:
Sec. 1222.102 Voting.
(a) Each eligible domestic manufacturer and importer of paper and
paper-based packaging shall be entitled to cast only one ballot in the
referendum. However, each domestic manufacturer in a landlord/tenant
relationship or a divided ownership arrangement involving totally
independent entities cooperating only to manufacture paper and paper-
based packaging, in which more than one of the parties is a domestic
manufacturer or importer, shall be entitled to cast one ballot in the
referendum covering only such domestic manufacturer or importer's share
of ownership.
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-15138 Filed 7-12-24; 8:45 am]
BILLING CODE P
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</html>Indexed from Federal Register on July 15, 2024.
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