Agricultural Marketing Service Increases Value to Imported Cotton
The Agricultural Marketing Service (AMS) branch of the United States Department of Agriculture (USDA) today released a final rule amending the Cotton Board rules and regulations by increasing the value assigned to imported cotton and the cotton content of imported products to be the same as the valuation of cotton subject to producer assessments.
“This valuation adjustment is designed to occur annually to ensure that assessments paid by producers and importers of cotton and cotton products are equivalent. The valuation adjustment is based on average prices during a previous 12-month period and reflects price movements,” stated Arizona producer and Cotton Board Chairman Kevin Rogers. “Because prices were strong last year, this rule adjusts the valuation of cotton content upward. Prices of cotton fiber have weakened lately and that change will be reflected in next year’s adjustment.”
In making this adjustment, USDA also updated the applicable assessment table to reflect Harmonized Tariff Schedule (HTS) statistical reporting numbers that were removed or updated since the last revision to the importer assessment provisions. The rule contains a revised Import Assessment Table detailing all applicable HTS codes.
“USDA’s AMS continues to provide excellent oversight and this assessment amendment, as well as the updates to the cotton conversion factors for the new HTS codes, is an example of that ongoing oversight,” concludes Rogers.
The rule goes into effect on September 27th, 2012.