The U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) issued a direct final rule which increases the supplemental assessment value used to calculate cotton fee paid by importers of cotton and cotton-containing products under the Cotton Research and Promotion Order. Unless significant adverse comments are received by October 5, 2017, this change will take effect on November 6, 2017.
The total value of assessment levied on imported cotton is the sum of two parts. The first part of the assessment is based on the weight of cotton imported—levied at a rate of $1 per bale of cotton, and is not changing. The second part of the import assessment (the supplemental assessment), based on the value of imported cotton lint or the cotton contained in imported cotton products, is increasing.
Currently the supplemental assessment on imported cotton is $0.011012 per kilogram. The amended assessment will be $0.01151, an increase of $0.000498 per kilogram.
This increase was based on the 12-month weighted average of price received by U.S. cotton farmers for Upland cotton during the period January through December 2016, and assures the rate of the supplemental assessment on imported cotton will be the same as that levied on cotton produced within the United States.
Revenue generated by these assessments is used to finance research and promotion programs designed to increase consumer demand for upland cotton in the U.S. and international markets.
If you have any questions regarding the increase in importers cotton assessment fee, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs department at usregaffairs@livingstonintl.com.