Rule2026-04570
Paper and Paper-Based Packaging Promotion, Research and Information Order Termination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 9, 2026
Effective
March 9, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule terminates the Federal research and promotion program for paper and paper-based packaging and the rules and regulations issued thereunder. This action is necessary because termination of the program was favored by a majority of manufacturers and importers voting in the referendum who also represent a majority of the volume of paper and paper-based packaging represented in the referendum. This rulemaking also removes the Paper and Paper-Based Packaging Promotion, Research and Information Order from the Code of Federal Regulations.
Full Text
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<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
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[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Rules and Regulations]
[Pages 11140-11141]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04570]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1222
[Doc. No. AMS-SC-25-0353]
Paper and Paper-Based Packaging Promotion, Research and
Information Order Termination
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Final rule.
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SUMMARY: This final rule terminates the Federal research and promotion
program for paper and paper-based packaging and the rules and
regulations issued thereunder. This action is necessary because
termination of the program was favored by a majority of manufacturers
and importers voting in the referendum who also represent a majority of
the volume of paper and paper-based packaging represented in the
referendum. This rulemaking also removes the Paper and Paper-Based
Packaging Promotion, Research and Information Order from the Code of
Federal Regulations.
DATES: This final rule is effective March 9, 2026, without further
action or notice.
FOR FURTHER INFORMATION CONTACT: George Webster, Marketing Specialist,
or Alexandra Caryl, Chief, Mid-Atlantic Region Branch, Market
Development Division, Specialty Crops Program, AMS, USDA; telephone:
(202) 720-8085; or email: <a href="/cdn-cgi/l/email-protection#f0b7959f829795dea7959283849582b085839491de979f86"><span class="__cf_email__" data-cfemail="d196b4bea3b6b4ff86b4b3a2a5b4a391a4a2b5b0ffb6bea7">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#4e0f222b362f202a3c2f600d2f3c37220e3b3d2a2f60292138"><span class="__cf_email__" data-cfemail="9cddf0f9e4fdf2f8eefdb2dffdeee5f0dce9eff8fdb2fbf3ea">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This final rule affecting 7 CFR part 1222 is
authorized under the Commodity Promotion, Research, and Information Act
of 1996 (Act) (7 U.S.C. 7411-7425). The Paper and Paper-Based Packaging
Promotion, Research and Information Order, hereinafter referred to as
the ``Order'', is codified at 7 CFR part 1222.
Prior documents in this proceeding: Continuance Referendum and
Moratorium on Assessment Collection, June 3, 2025 (90 FR 23421); Paper
and Paper-Based Packaging Promotion, Research and Information Order,
January 22, 2014 (79 FR 3696); and Referendum Procedures, September 16,
2013 (78 FR 56817).
Executive Order 12866
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
terminates an existing research and promotion program, the Paper and
Paper-Based Packaging Promotion, Research and Information Order,
consistent with the latest referendum results. Additionally, this
action is exempt from the requirements of Executive Order 14192,
``Unleashing Prosperity Through Deregulation,'' pursuant to section
5(c).
Executive Order 13175
This action was 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 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 changes to the regulations will be
shared during an upcoming quarterly call. AMS will continue to work
with the USDA Office of Tribal Relations to ensure meaningful
consultation is provided as needed with regard to the termination of
the Order.
Executive Order 12988
This rule was reviewed under Executive Order 12988, ``Civil Justice
Reform.'' It is not intended to have retroactive effect. Section 524 of
the Commodity Promotion, Research, and Information Act of 1996 (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.
Petition and Review of Orders
Under section 519 of the Act (7 U.S.C. 7418), a person subject to
an order may file a written petition with USDA stating 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.
Background
This final rule terminates the Order as prescribed in 7 CFR 1222.82
and section 522 of the Act. The Act authorizes national promotion,
research, and information programs for agricultural commodities. In
accordance with the Act, at the request of the paper and paper-based
packaging industry, USDA developed and implemented the Order, which
became effective on January 23, 2014.
The Order covered persons who manufactured or imported 100,000
short tons or more of paper and paper-based packaging in a year.
Section 518(c) of the Act (7 U.S.C. 7417(c)), and 7 CFR 1222.81(b)
provide the Secretary of Agriculture (Secretary) shall conduct
subsequent referenda not later than every seven years, at the request
of 10 percent or more of eligible voters, or at the request of the
Paper and Packaging Board (Board), as established by the Order. Section
518(d) of the Act (7 U.S.C. 7417(d)), and 7 CFR 1222.81(b)(5) also
allow for a referendum whenever the Secretary deems it necessary. The
Order shall continue if it is favored by a majority of manufacturers
and importers voting in the referendum who also represent a majority of
the volume represented in the referendum and who, during a
representative period, have been engaged in the manufacturing or
importation of paper and paper-based packaging, as long as the
Secretary finds that the Order tends to effectuate the purposes of the
Act.
On January 28, 2025, USDA received a petition requesting a
referendum from more than the required 10 percent of eligible voters.
As such, a referendum was held from July 14 through July 25, 2025. The
representative period for establishing voter eligibility was January 1,
2024, through December 31, 2024. Persons who manufactured or imported
100,000 short tons or more of paper and paper-based packaging during
the representative period and were subject to assessment during that
time were eligible to vote. Notice of the referendum was published in
the
[[Page 11141]]
Federal Register on June 3, 2025 (90 FR 23421). Termination of the
program was favored by 73.53 percent of eligible manufacturers and
importers, representing 90.39 percent of the volume represented in the
referendum.
In accordance with 7 CFR 1222.83, the USDA appointed two members of
the Board to serve as trustees for the purpose of liquidating affairs.
Regulatory Flexibility Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), the Agricultural Marketing Service (AMS) is required to
examine the impact of the action 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 actions to the scale of
businesses subject to the actions so that small businesses will not be
disproportionately burdened.
The Small Business Administration (SBA) defines, in 13 CFR part
121, small firms which perform ``Corrugated and Solid Fiber Box
Manufacturing'' activities \1\ as those employing no more than 1,250
employees. This definition of a small business applies to the program's
domestic manufacturers. According to the U.S. Census Bureau's 2022
Economic Census, there were a total of 594 paper and packaging firms
operating in the U.S. in 2022. Of these, 20 firms, or about 3 percent,
employed 500 employees or more. This means that at least 97 percent of
paper and packaging domestic manufacturers would be considered small
businesses per the SBA definition.
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\1\ North American Industry Classification System (NAICS) Code
322211.
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While employment data for domestic manufacturers is available for
this analysis, AMS is unaware of any such data for importers of paper
and packaging materials. Therefore, the SBA size standard for
``Postharvest Crop Activities'' \2\ of average annual receipts no
greater than $34 million was used to classify small importers for the
purposes of this RFA. Based on data from Customs and Border Protection,
there were 38 of 7,023 importers of paper and packaging materials whose
2022-2024 average annual receipts exceeded $34 million. This means that
more than 99 percent of importers would be considered small businesses
per the SBA definition. This action would not disproportionately burden
small domestic manufacturers and importers of paper and packaging
materials.
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\2\ NAICS Code 115114.
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According to Board data, in 2024 there were 46 eligible
manufacturers and importers who paid approximately $21.2 million in
assessments. When the Order was published in the Federal Register on
January 22, 2014, USDA stated an anticipated $25 million of assessments
would be collected from about 70 eligible entities. The assessment rate
is currently 35 cents per short ton or its equivalent of paper and
paper-based products. This is the same rate that was set when the
program first started. USDA issued a notice on June 3, 2025 (90 FR
23421) establishing a moratorium on the collection of assessments with
immediate effect.
Termination of the research and promotion program and its Order
should reduce costs for manufacturers and importers. As with all
research and promotion program programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this final rule.
AMS is issuing this rule as a final rule. Although the
Administrative Procedure Act (APA) generally requires notice and
comment rulemaking, section 553 of the APA provides an exception when
the agency, for good cause, finds that notice and public procedure are
``impracticable, unnecessary, or contrary to the public interest.'' AMS
concludes that general notice and comment is unnecessary here because
affected stakeholders decisively voted to terminate the program. The
purpose of this final rule is to carry out the decision made by
eligible manufacturers and importers of paper and paper-based
packaging, which the Secretary has determined would tend to effectuate
the purposes of the Act.
Based on the foregoing, and pursuant to section 522 of the Act and
7 CFR 1222.83, it is hereby found that the Order, and the Board
effectuated by the Order, are terminated.
It is also found and determined upon good cause that it is
unnecessary and contrary to the public interest to give preliminary
notice or to engage in further public procedure prior to putting this
action into effect. Additionally, good cause exists for not postponing
the effective date of this action until 30 days after publication in
the Federal Register because this action relieves restrictions on
manufacturers and importers.
List of Subjects in 7 CFR Part 1222
Administrative practice and procedure, advertising, consumer
information, marketing agreements, paper promotion, reporting and
recordkeeping requirements.
PART 1222--[REMOVED]
0
For the reasons set forth in the preamble, under the authority of 7
U.S.C. 7421, 7 CFR part 1222 is removed.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-04570 Filed 3-6-26; 8:45 am]
BILLING CODE 3410-02-P
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