Cotton Board Rules and Regulations: Amending Importer Line-Item De Minimis
Docket Number: AMS-CN-14-0037
Effective Date: July 15, 2016
Summary
The Agricultural Marketing Service (AMS) is amending the Cotton Board Rules and Regulations to remove the cotton import de minimis provision. The Cotton Research and Promotion (R&P) Program assesses U.S. cotton producers and importers of cotton and cotton-containing products. Importers are exempt from paying the cotton import assessment (known commonly among importers as the “cotton fee”) if a line item on U.S. Customs and Border Protection (CBP) documentation is $2.00 or less. The exemption was initially established to lessen the administrative burden of collecting an import assessment, which was originally estimated to be $2.00 per line item, in instances in which the transactions costs of the collection would exceed the actual value of the assessment; however, technological advances in the CBP documentation process significantly reduced the transactions costs associated with collecting import assessments, and CBP has since stopped charging USDA for the processing and collecting of assessments. Given that transactions costs no longer exceed assessment rates of $2.00 or less, AMS is removing this de minimis provision from the regulations. In addition, the definition of cotton with respect to procedures for conducting the sign-up period is being modified.
Contact
Shethir M. Riva, Chief
Research and Promotion Staff
Cotton and Tobacco Program
AMS, USDA
100 Riverside Parkway, Suite 101
Fredericksburg, VA 22406
Telephone: (540) 361-2726
Fax: (540) 361-1199
Supporting Documents