Rule2025-09217

Tobacco Grading and Inspections Services-Rescission of Designated Tobacco Markets

Primary source

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Published
May 22, 2025
Effective
July 21, 2025

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This action removes and reserves subpart D, titled "Orders of Designation of Tobacco Markets" from the Code of Federal Regulations (CFR). The regulations subpart D are obsolete and unnecessary because The Fair and Equitable Tobacco Reform Act of 2004 eliminated mandatory grading of types of tobacco eligible for price support programs and a referendum of eligible producers voted in favor of terminating the designations for tobacco auction markets in June of 2005.

Full Text

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<title>Federal Register, Volume 90 Issue 98 (Thursday, May 22, 2025)</title>
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[Federal Register Volume 90, Number 98 (Thursday, May 22, 2025)]
[Rules and Regulations]
[Page 21841]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09217]



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Rules and Regulations
                                                Federal Register
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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.

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Federal Register / Vol. 90, No. 98 / Thursday, May 22, 2025 / Rules 
and Regulations

[[Page 21841]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. AMS-CN-25-0025]
RIN 0581-AE43


Tobacco Grading and Inspections Services--Rescission of 
Designated Tobacco Markets

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This action removes and reserves subpart D, titled ``Orders of 
Designation of Tobacco Markets'' from the Code of Federal Regulations 
(CFR). The regulations subpart D are obsolete and unnecessary because 
The Fair and Equitable Tobacco Reform Act of 2004 eliminated mandatory 
grading of types of tobacco eligible for price support programs and a 
referendum of eligible producers voted in favor of terminating the 
designations for tobacco auction markets in June of 2005.

DATES: The final rule is effective July 21, 2025.

FOR FURTHER INFORMATION CONTACT: Angie Snyder, Deputy Administrator, 
USDA-AMS-Cotton and Tobacco Program, 3275 Appling Road, Memphis, TN 
38133; Telephone: (901) 384-3000; Email: <a href="/cdn-cgi/l/email-protection#6e0f0009070b401d00170a0b1c2e1b1d0a0f40090118"><span class="__cf_email__" data-cfemail="a1c0cfc6c8c48fd2cfd8c5c4d3e1d4d2c5c08fc6ced7">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: The Fair and Equitable Tobacco Reform Act of 
2004 (sec. 611(b), Pub. L. 108-357, 118 Stat. 1522; Oct. 22, 2004) 
eliminated the price support and quota system for tobacco produced in 
the United States and eliminates mandatory grading of types of tobacco 
eligible for price support programs. Under the Tobacco Inspection Act 
(ch. 623, sec. 9, 49 Stat. 733; Aug. 23, 1935), mandatory Federal 
grading of any tobacco sold at auction on a designated market would 
continue only if growers supported the designation of existing tobacco 
auctions markets for the purpose of mandatory grading.
    Under the Tobacco Inspection Act (7 U.S.C. 511d), the Secretary is 
authorized to designate those auction markets where tobacco is bought 
and sold thereon at auction. Once tobacco markets are designated by the 
Secretary, no tobacco may be offered for sale at auction on such market 
until it has been inspected and certified by an authorized 
representative of the Secretary. It also provides that, before any 
market is designated, the Secretary is required to determine by 
referendum the desire of tobacco growers who sold tobacco at auction on 
such market during the preceding marketing season.
    A referendum (70 FR 20724; April 21, 2005), requested by the 
National Advisory Committee for Tobacco Inspection Services, was 
conducted May 9 through 13, 2005, to determine if tobacco producers 
favored termination of designations for the auction markets, thus 
eliminating the requirement for mandatory Federal inspection. The 
referendum results, announced on June 15, 2005, showed 57 percent of 
the producers of flue-cured tobacco, burley tobacco, Kentucky-Tennessee 
fire cured tobacco, Virginia fire-cured tobacco, Virginia sun-cured 
tobacco, and dark air-cured tobacco voted in favor of terminating the 
market designations. A vote by a simple majority of eligible producers 
was necessary to terminate the designations for auction markets 
effective for the 2005 and subsequent marketing seasons.
    Given that designated tobacco markets that require mandatory 
grading have not been active since June of 2005, there are no known 
costs or benefits associated with USDA's regulations governing 
mandatory tobacco inspection/grading, which are contained in part 29 of 
title 7 of the Code of Federal Regulations. Currently, subpart D of 7 
CFR part 29 includes a policy statement and a list of 188 tobacco 
markets designated for purposes of mandatory grading.
    Upon reviewing these regulations, USDA has determined that subpart 
D of 7 CFR part 29 should be rescinded for the reasons stated above. To 
the extent there is any uncertainty about the costs and benefits of 
these regulations, it is the policy of USDA to err on the side of 
deregulation and focus resources on fairly and rationally enforcing a 
discrete and manageable number of regulations. USDA has determined that 
there is no reliance interest in the regulations to be removed. 
Moreover, regardless of the lawfulness, USDA has no interest in 
maintaining a regulation that is unnecessary for the reasons stated 
above. The regulations in subpart D of 7 CFR part 29 are not a 
priority.

List of Subjects in 7 CFR Part 29

    Administrative practice and procedure, Advisory committees, 
Government publications, Imports, Pesticides and pests, Reporting and 
recordkeeping requirements, Tobacco.

    For the reasons set forth in the preamble, AMS amends 7 CFR part 29 
as follows:

PART 29--TOBACCO INSPECTION

0
1. The authority citation for part 29 continues to read as follows:

    Authority: 7 U.S.C. 511-511s.

Subpart D--[Removed and Reserved]

0
2. Remove and reserve subpart D, consisting of Sec.  29.8001.

Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-09217 Filed 5-21-25; 8:45 am]
BILLING CODE 3410-02-P


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Indexed from Federal Register on May 22, 2025.

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