[Federal Register Volume 77, Number 66 (Thursday, April 5, 2012)]
[Rules and Regulations]
[Pages 20503-20505]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8125]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 77, No. 66 / Thursday, April 5, 2012 / Rules
and Regulations
[[Page 20503]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 27 and 28
[Doc. AMS-CN-11-0066]
RIN 0581-AD19
Revision of Cotton Classification Procedures for Determining
Cotton Leaf Grade
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is amending the
procedures for determining the official leaf grade for Upland and Pima
cotton. The leaf grade is a part of the official classification which
denotes cotton fiber quality used in cotton marketing and manufacturing
of cotton products. Previously, the leaf grade was determined by visual
examination and comparison to the Universal Cotton Standards for Leaf
Grade that serves as the official cotton standards by qualified cotton
classers. Amended procedures replace the classer's leaf determination
with the instrument leaf measurement made by the High Volume Instrument
(HVI) system, which has been used in official cotton classification for
Upland Cotton since 1991.
DATES: Effective Date: April 6, 2012.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Programs, AMS, USDA, 3275 Appling Road, Memphis, TN
38133. Telephone (901) 384-3060, facsimile (901) 384-3021, or email
darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866, and, therefore, has not been
reviewed by the Office of Management and Budget (OMB).
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
There are no administrative procedures which must be exhausted prior to
any judicial challenge to the provisions of this final rule.
Background
AMS Cotton and Tobacco Programs is amending the procedures for
providing cotton leaf grade classification services as authorized by
the United States Cotton Standards Act of 1923, as amended (7 U.S.C.
51-65), the Cotton Statistics and Estimates Act of 1927 (7 U.S.C. 471-
476), and the U.S. Cotton Futures Act (7 U.S.C. 15b, 7 U.S.C. 4736, 7
U.S.C. 1622(g)). While measurements for other quality factors are
performed by precise HVI measurements, manual determinations for leaf
grade and extraneous matter are currently part of the official USDA
cotton classification. Accurate assignment of leaf grade is of economic
importance to all participants along the cotton supply chain since leaf
content is all waste and there is a cost factor associated with its
removal. Furthermore, since small leaf particles cannot always be
removed, these particles detract from the quality and, therefore, the
value of the finished product.
AMS has HVIs with the ability to optically identify, with a high
level of confidence, the number of leaf particles (Particle Count) and
to measure the surface area covered by non-lint particles (Area). AMS
then applies mathematical algorithms to correlate Particle Count and
Area data to the Universal Cotton Standards for Leaf Grade which serve
as the ultimate comparison for cotton grading. A pilot project was
conduct by AMS during 2009 and 2010 cotton classing seasons to evaluate
the accuracy of the proposed instrument leaf grade determination
process. Results showed that the HVI measures leaf as compared back to
the Universal Cotton Standards for Leaf Grade more accurately than
cotton classers. This rule amends the cotton classification process,
replacing the classer's leaf determination with the instrument leaf
measurement made by the HVI system. Instrument leaf grading is expected
to improve the repeatability, consistency and accuracy of leaf grade
classification data provided to the cotton industry, while improving
operational efficiency.
In Sec. 27.2 (n), the definition of the term ``classification'' is
revised to reflect the changes in procedures made under 7 CFR part 28.
Also under 7 CFR part 27, Sec. 27.31 is revised to reflect the
deletion of the requirement for cotton classers to manually determine
leaf grade. The revised section reflects the changes made in procedures
for determination of cotton quality in accordance with the official
standards.
In 7 CFR part 28, Sec. 28.8 is revised to reflect the change in
cotton classification procedures which replaces classer visual
examinations to determine leaf grade with instrument leaf measurement
by HVI systems.
In addition, miscellaneous other changes are made to 7 CFR parts 27
and 28 to better reflect current procedures in view of leaf
determination change. For example, those determinations made by cotton
classers or by authorized Cotton Program employees are specified.
Summary of Comments
A proposed rule was published on December 23, 2011, with a comment
period of December 23, 2011 through January 9, 2012 (76 FR 80278). AMS
received four comments: One from a national trade organization that
represents approximately 80 percent of the US cotton industry,
including cotton producers, ginners, warehousemen, merchants,
cooperatives, cottonseed processors, and textile manufacturers from
Virginia to California; one from a national trade organization
comprised of eight state and regional membership organizations that
represent approximately 680 individual cotton ginning operations in 17
cotton-producing states; one from a national trade organization
representing cotton merchant firms that handle over 80 percent of the
U.S. cotton sold in domestic and foreign markets; and one from an
individual commenter who grades cotton. The comments from the trade
organizations were supportive of both the proposed changes while the
individual commenter was opposed. The comments may be viewed at
www.regulations.gov.
[[Page 20504]]
Comments from the three national trade organizations expressed
support for AMS using instrument leaf grading as the method for
determining official leaf grades. Furthermore, each of these
organizations recognized how thorough testing conducted by AMS
throughout both the 2009 and 2010 classing seasons demonstrated
improvements in both the consistency and repeatability of leaf grade
determination.
One individual commenter expressed concerns about the accuracy of
instrument-determined leaf grades, the timing of the regulatory change,
and the length of the comment period. The commenter stated their belief
that instrument leaf grading is not a more accurate means to grade
cotton over a human classer. AMS began using the instrument-based
system on a trial basis, with the ability of classers to overwrite
inaccurately assigned data, during the 2009 and 2010 cotton crops.
Results demonstrated significant improvements in accuracy and
repeatability as factors such as grader fatigue and central tendency
were eliminated. Trial results were presented at numerous open-forum
discussions conducted throughout the Cotton Belt to ensure that
technical and operational information was fully and accurately
communicated to the various segments of the U.S. cotton industry. AMS
graders in all field offices evaluated the process change for accuracy,
provided feedback, and were briefed on the impact the change would have
on streamlining their duties. AMS integrated these graders' feedback to
help refine the computer system used for assigning the leaf grade.
The timeline for implementing the process change was scheduled
around the completion of critical software programing modifications
made to more than four hundred proprietary AMS Information Technology
(IT) programs. These computer programs ensure the accurate calculation,
secure storage, and seamless flow of cotton quality data, while
providing timely information to managers for the evaluation of
equipment and employees. With the industry's acceptance, approval, and
recommendation to implement, the expectation was that software
modifications and the regulatory process would conclude concurrently
prior to the beginning of the 2011 crop. However, changes in the
timeline have resulted in finalization at this time.
The comment period time frame was deemed appropriate to implement
instrument leaf grading as soon as possible in order to allow the
cotton industry to fully benefit from the increased accuracy and
repeatability of cotton leaf data provided by instrument leaf grading
during the current classing season. The timing of the comment period
fell coincidentally during the Annual Cotton Beltwide Conference--the
largest single gathering of representative of all segments of the U.S.
cotton industry. AMS used this forum to notify constituents of the
opportunity to submit comments.
Regulatory Flexibility Act and Paperwork Reduction Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this action on small entities and has determined that its
implementation will not have a significant economic impact on a
substantial number of small entities. Fees paid by users of the service
are not changed by this action; implementation of the new procedures
indicates the existing fees remain sufficient to fully reimburse AMS
for provision of the services.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. There are an estimated 25,000 cotton
growers, merchants, and textile manufacturers in the U.S. who
voluntarily use the AMS cotton classing services annually under the
United States Cotton Standards Act of 1923, as amended, the Cotton
Statistics and Estimates Act of 1927, and the U.S. Cotton Futures Act.
The majority of these cotton growers are small businesses under the
criteria established by the Small Business Administration (13 CFR
121.201). The change in procedures will not significantly affect small
businesses as defined in the RFA because:
(1) Classification will continue to be based upon the Universal
Cotton Standards for Leaf Grade established and maintained by the
Department;
(2) The HVI measurement has been a part of the official
classification record since 1991. Implementation of the revision for
all cotton classification will not affect competition in the
marketplace or adversely impact on cotton classification fees; and
(3) The use of cotton classification services is voluntary. For the
2010 crop, 17.6 million bales were produced by growers, and virtually
all of them were voluntarily submitted for USDA classification. Futures
classification services provided for merchants during the same period
totaled approximately 750 thousand bales.
In compliance with Office of Management and Budget (OMB)
regulations (5 CFR part 1320), which implement the Paperwork Reduction
Act (PRA) (44 U.S.C. 3501-3520), the information collection
requirements contained in the regulation to be amended is currently
approved under OMB control number 0581-0008, Cotton Classing, Testing
and Standards.
Pursuant to 5 U.S.C. 553, it is found that good cause exists for
not postponing the effective date of the rule until 30 days after
publication in the Federal Register because: (1) The 2011 cotton crop
year has already begun; (2) the industry is familiar with instrument
leaf grading process as AMS implemented a pilot project to evaluate the
accuracy of the determination for crop years 2009 and 2010; and (3)
there is overall industry support for this change.
List of Subjects
7 CFR Part 27
Commodity futures, Cotton.
7 CFR Part 28
Administrative practice and procedure, Cotton.
For the reasons set forth in the preamble, 7 CFR parts 27 and 28
are amended as follows:
PART 27--[AMENDED]
0
1. The authority citation for 7 CFR part 27 continues to read as
follows:
Authority: 7 U.S.C. 15b, 7 U.S.C. 4736, 7 U.S.C. 1622(g).
0
2. In Sec. 27.2, paragraph (n) is revised to read as follows:
Sec. 27.2 Terms defined.
* * * * *
(n) Classification. The classification of any cotton shall be
determined by the quality of a sample in accordance with the Universal
Cotton Standards (the official cotton standards of the United States)
for the color grade, the leaf grade, and fiber property measurements of
American Upland cotton. High Volume Instruments will determine all
fiber property measurements except extraneous matter. Cotton classers
authorized by the Cotton and Tobacco Programs will determine the
presence of extraneous matter.
* * * * *
0
3. Section 27.31 is revised to read as follows:
Sec. 27.31 Classification of Cotton.
For purposes of subsection 15b (f) of The Act, classification of
cotton is the determination of the quality of a sample in accordance
with the Universal Cotton Standards (the official cotton standards of
the United States) for the color grade
[[Page 20505]]
and leaf grade of American upland cotton, and fiber property
measurements such as micronaire. High Volume Instruments will determine
all fiber property measurements except extraneous matter. High Volume
Instrument colormeter measurements will be used for determining the
official color grade. Cotton classers authorized by the Cotton and
Tobacco Programs will determine the presence of extraneous matter and
authorized employees of the Cotton and Tobacco Programs will determine
all fiber property measurements using High Volume Instruments.
PART 28--[AMENDED]
0
3. The authority citation for 7 CFR part 28 continues to read as
follows:
Authority: 7 U.S.C. 55 and 61.
0
4. Section 28.8 is revised to read as follows:
Sec. 28.8 Classification of cotton; determination.
For the purposes of The Act, the classification of any cotton shall
be determined by the quality of a sample in accordance with Universal
Cotton Standards (the official cotton standards of the United States)
for the color grade and the leaf grade of American upland cotton, the
length of staple, and fiber property measurements such as micronaire.
High Volume Instruments will determine all fiber property measurements
except extraneous matter, special conditions and remarks. High Volume
Instrument colormeter measurements will be used for determining the
official color grade. Cotton classers authorized by the Cotton and
Tobacco Programs will determine the presence of extraneous matter,
special conditions and remarks and authorized employees of the Cotton
and Tobacco Programs will determine all fiber property measurements
using High Volume Instruments. The classification record of a Classing
Office or the Quality Control Division with respect to any cotton shall
be deemed to be the classification record of the Department.
Dated: March 30, 2012.
Robert C. Keeney,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2012-8125 Filed 4-4-12; 8:45 am]
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