Rule2025-09550

Tobacco Grading and Inspections Services-Rescission of Tobacco Quota Provisions

Primary source

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Published
May 29, 2025
Effective
July 28, 2025

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This direct final rule amends regulations that govern the inspection of tobacco under the national marketing quota system established under the Agricultural Adjustment Act of 1938. The Fair and Equitable Tobacco Reform Act of 2004 eliminated the price support and quota system for tobacco produced in the United States. In alignment with E.O. 14192, AMS is removing and, where appropriate, amending regulations that have expired authorizing statutes and govern non- operational programs.

Full Text

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<title>Federal Register, Volume 90 Issue 102 (Thursday, May 29, 2025)</title>
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[Federal Register Volume 90, Number 102 (Thursday, May 29, 2025)]
[Rules and Regulations]
[Pages 22611-22613]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09550]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Doc. No. AMS-CN-25-0028]
RIN 0581-AE40


Tobacco Grading and Inspections Services--Rescission of Tobacco 
Quota Provisions

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

ACTION: Direct final rule.

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SUMMARY: This direct final rule amends regulations that govern the 
inspection of tobacco under the national marketing quota system 
established under the Agricultural Adjustment Act of 1938. The Fair and 
Equitable Tobacco Reform Act of 2004 eliminated the price support and 
quota system for tobacco produced in the United States. In alignment 
with E.O. 14192, AMS is removing and, where appropriate, amending 
regulations that have expired authorizing statutes and govern non-
operational programs.

DATES: This direct final rule is effective July 28, 2025, without 
further action or notice, unless a significant adverse comment is 
received by June 30, 2025. If a significant adverse comment is

[[Page 22612]]

received, AMS will publish in the Federal Register a withdrawal of this 
direct final rule prior to the effective date.

ADDRESSES: Comments can be submitted electronically at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by searching the docket number listed above. 
Interested persons are invited to submit written comments concerning 
this direct final rule. Comments may also be submitted by mail or hand 
delivery to USDA AMS Cotton and Tobacco Program, 3275 Appling Road, 
Memphis, TN 38133. All comments should reference the docket number and 
the date and page number of this issue of the Federal Register. All 
comments submitted in response to this direct final rule will be 
included in the record and will be made available to the public at: 
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Public comments are posted without change. 
Any identifying information submitted with these comments will also be 
publicly available.

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#6f0e0108060a411c01160b0a1d2f1a1c0b0e41080019"><span class="__cf_email__" data-cfemail="c8a9a6afa1ade6bba6b1acadba88bdbbaca9e6afa7be">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: Part I of subtitle B of title III of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) authorized 
the establishment of a national marketing quota program for tobacco to 
facilitate the orderly marketing of tobacco, thus avoiding abnormally 
excessive supplies being produced and dumped indiscriminately on the 
Nation-wide market. However, 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 as well as mandatory grading of types of tobacco 
eligible for price support.
    AMS's regulations governing tobacco marketed under the quota 
program are contained in 7 CFR 29. Upon reviewing these regulations in 
light of changes to the law and in alignment with Executive Order 
14192, AMS has determined that regulations in 7 CFR part 29 pertaining 
to the obsolete market quota program should be removed and, where 
appropriate, amended.
    AMS is removing the statutory authorities listed under this subpart 
B heading since these authorities are redundant--already cited under 
the heading for part 29. Paragraph (2) under paragraph (a) of Sec.  
29.47a is amended to remove provisions directly related to market quota 
provisions. Likewise, paragraph (6) under paragraph (a) of Sec.  29.47a 
are removed as they directly pertain to market quota provisions.
    AMS is removing redundant and obsolete statutory authorities listed 
under subpart C heading.
    The language in the heading of subpart F is amended to remove 
references to obsolete market quota program, and the obsolete statutory 
authorities listed under this subpart heading are being removed. 
Multiple sections throughout subpart F, including Sec. Sec.  29.9207, 
29.9221, 29.9240, and 29.9261-9262, are being removed as they pertain 
to the obsolete market quota program. Lastly, Sec. Sec.  29.9232-9234, 
and 29.9236, are amended by removing the word ``nonquota,'' and Sec.  
29.9241 is amended by removing the phrase ``with no other quota, 
nonquota.''
    Given that AMS has not provided services related to the tobacco 
quota program in twenty years, there are no known costs or benefits 
associated with removing AMS's regulations governing tobacco marketed 
under the quota program. Mandatory inspection and grading of tobacco 
subject to marketing quota were user-fee based services, which are 
services paid for by the industry through fees. Fee rates for tobacco 
inspection and grading services were set such that all costs associated 
with these services were covered by revenues generated from providing 
these services. 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.
    Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5 
U.S.C. 551 et seq.) authorizes agencies to dispense with prior notice 
and comment for rules when the agency for ``good cause'' finds that 
those procedures are ``impracticable, unnecessary, or contrary to the 
public interest.'' Under this section, an agency, upon finding good 
cause, may issue a final rule without first publishing a proposed rule. 
Removing regulations pertaining to tobacco market quotas and making 
conforming amendments will provide transparency and may reduce 
confusion for tobacco producers and other stakeholders. Further, AMS 
views this action as noncontroversial and anticipates no adverse public 
comment. This rule will become effective, as published in this 
document, July 28, 2025 without further action, unless adverse comments 
are received on or before June 30, 2025. Adverse comments are 
considered to be those comments that suggest the rule should not be 
adopted or suggest the rule should be changed.
    If AMS receives adverse comments, we will publish a document in the 
Federal Register, withdrawing this rule before the effective date. AMS 
will then publish a proposed rule for public comment. Following the 
close of that comment period, the comments will be considered, and a 
final rule addressing the comments will be published.
    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), AMS 
certifies that this direct final rule will not, if issued, have a 
significant economic impact on a substantial number of small entities. 
AMS has not provided services related to the tobacco quota program in 
twenty years. The amendments made by the direct final rule will merely 
conform the CFR with AMS' current operating practices. This rule has 
been determined to be not significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by OMB. There are no 
current information collections associated with the regulations related 
to the tobacco market quota program.
    USDA has determined that there is no reliance interest in obsolete 
regulations. Moreover, regardless of the lawfulness, USDA has no 
interest in maintaining regulations that have expired authorizing 
statutes or govern non-operational programs. Maintaining regulations 
pertaining to the obsolete tobacco market quota program in 7 CFR part 
29 are not a priority. Therefore, AMS is amending 7 CFR 29 to remove, 
and where appropriate, references and provisions pertaining to 
mandatory inspection and grading required by the obsolete market quota 
program.[FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
DATE][RULES][RULE][PREAMB][AGENCY]*[/AGENCY][SUBJECT]*[/SUBJECT][/
PREAMB][SUPLINF][HED]*[/HED]

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 B--[Amended]

0
2. Remove the authority citation to subpart B.


Sec.  29.74a  [Amended]

0
3. Amend Sec.  29.74a by:
0
a. Removing the last sentence of paragraph (a)(2) and;

[[Page 22613]]

0
b. Removing paragraph (a)(6).

Subpart C--[Amended]

0
4. Remove the authority citation to subpart C.

Subpart F--Policy Statement and Provisions Governing the 
Identification and Certification of Tobacco

0
5. Revise the heading to subpart F to read as set forth above.

0
6. Remove the authority citation to subpart F.


Sec.  29.9204  [Amended]

0
7. Amend Sec.  29.9204 by removing the word ``nonquota.''


Sec.  29.9207  [Removed]

0
8. Remove Sec.  29.9207.


Sec.  29.9221  [Removed]

0
9. Remove the undesignated heading ``POLICY STATEMENT'' and Sec.  
29.9221.

0
10. Revise Sec.  29.9232 to read as follows:


Sec.  29.9232  Where certification is available.

    Tobacco may be inspected and certified by class or type, upon 
request of an interested party, when the tobacco is displayed at an 
approved receiving station where the tobacco is accessible to the 
inspector.


Sec. Sec.  29.9233, 29.9234, and 29.9236  [Amended]

0
11. Amend Sec. Sec.  29.9233, 29.9234, and 29.9236 by removing the word 
``nonquota'' wherever it appears.


Sec.  29.9240  [Removed]

0
12. Remove Sec.  29.9240.

0
13. Amend Sec.  29.9241 by revising the second sentence to read as 
follows:


Sec.  29.9241  Accessibility of tobacco.

    * * * Each croplot shall be displayed at an approved receiving 
station in a continuous and orderly sequence with no other producer's 
tobacco in between. * * *


Sec. Sec.  29.9261 and 29.9262  [Removed]

0
14. Remove Sec. Sec.  29.9261 and 29.9262.

Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-09550 Filed 5-28-25; 8:45 am]
BILLING CODE 3410-02-P


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Indexed from Federal Register on May 29, 2025.

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