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Federal Register / Vol. 86, No. 188 / Friday, October 1, 2021 / Rules and Regulations 870.5

Department of Agriculture amends 7
CFR chapters VIII and XIV as follows:
TITLE 7AGRICULTURE
CHAPTER VIIIAGRICULTURAL
MARKETING SERVICE FEDERAL
GRAIN INSPECTION SERVICE, FAIR
TRADE PRACTICES PROGRAM, DEPARTMENT OF AGRICULTURE
Subchapter BFair Trade Practices 1. Under the authority of 7 CFR
2.22a1, revise the heading of subchapter B to read as set forth above.
2. Add part 870 to read as follows:

PART 870ECONOMIC ASSISTANCE
ADJUSTMENT FOR TEXTILE MILLS
Sec.
870.1 Applicability.
870.3 Eligible upland cotton.
870.5 Eligible domestic users.
870.7 Upland cotton Domestic User Agreement.
870.9 Payment.
Authority: 7 U.S.C. 9037c.
870.1

Applicability.

a These regulations specify the terms and conditions under which the Commodity Credit Corporation CCC
will make payments to eligible domestic users who have entered into an Upland Cotton Domestic User Agreement with CCC to participate in the upland cotton domestic user program.
b CCC will specify the forms to be used in administering the Economic Adjustment Assistance for Textile Mills program.
870.3

Eligible upland cotton.

a For purposes of this subpart, eligible upland cotton is baled upland cotton, regardless of origin, that is opened by an eligible domestic user, and is either:
1 Baled lint, including baled lint classified by USDAs Agricultural Marketing Service as Below Grade;
2 Loose samples removed from upland cotton bales for classification purposes that have been rebaled;
3 Semi-processed motes that are of a quality suitable, without further processing, for spinning, papermaking, or production of non-woven fabric; or 4 Re-ginned processed motes.
b Eligible upland cotton must not be:
1 Cotton for which a payment, under the provisions of this subpart, has been made available;
2 Raw unprocessed motes, pills, linters, or other derivatives of the lint cleaning process; or 3 Textile mill wastes.

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Eligible domestic users.

a For purposes of this subpart, a person regularly engaged in the business of opening bales of eligible upland cotton for the purpose of spinning, papermaking, or processing of nonwoven cotton fabric in the United States, who has entered into an agreement with CCC to participate in the upland cotton user program, will be considered an eligible domestic user.
b Applications for payment under this subpart must contain documentation required by the provisions of the Upland Cotton Domestic User Agreement and other instructions that CCC issues.
870.7 Upland cotton Domestic User Agreement.

a Payments specified in this subpart will be made available to eligible domestic users who have entered into an Upland Cotton Domestic User Agreement with CCC and who have complied with the terms and conditions in this subpart, the Upland Cotton Domestic User Agreement, and instructions issued by CCC.
b Upland Cotton Domestic User Agreements may be obtained from the Warehouse and Commodity Management Division, P.O. Box 419205, Stop 9148, Kansas City, MO 64141
6205. In order to participate in the program authorized by this subpart, domestic users must execute the Upland Cotton Domestic User Agreement and forward the original and one copy to KCCO.
870.9

Payment.

a The payment rate for purposes of calculating payments as specified in this subpart is 3 cents per pound.
b Payments specified in this subpart will be determined by multiplying the payment rate, of 3 cents per pound, by 1 In the case of baled upland cotton, whether lint, loose samples or reginned motes, but not semi-processed motes, the net weight of the cotton used gross weight minus the weight of bagging and ties;
2 In the case of unbaled reginned motes consumed, without rebaling, for an end use in a continuous manufacturing process, the weight of the reginned motes after final cleaning;
and 3 In the case of semi-processed motes which are of a quality suitable, without further processing, for spinning, papermaking, or manufacture of nonwoven cotton fabric, 25 percent of the weight gross weight minus the weight of bagging and ties, if baled of the semiprocessed motes; provided further, that with respect to semi-processed motes
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that are used prior to August 18, 2010, payment may be allowed by CCC in its sole discretion at 100 percent of the weight as determined appropriate for a transition of the program to the 25
percent factor.
c In all cases, the payment will be determined based on the amount of eligible upland cotton that an eligible domestic user consumed during the immediately preceding calendar month.
For the purposes of this subpart, eligible upland cotton will be considered consumed by the domestic user on the date the bale is opened for consumption, or if not baled, the date consumed, without further processing, in a continuous manufacturing process.
d Payments specified in this subpart will be made available upon application for payment and submission of supporting documentation, as required by the CCC-issued provisions of the Upland Cotton Domestic User Agreement.
e All payments received by the eligible domestic user of upland cotton must be used for purposes specified in 7 U.S.C. 9037c3, which include but are not limited to, acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery. Such capital expenditures must be directly attributable and certified as such by the user for the purpose of manufacturing upland cotton into eligible cotton products in the United States.
CHAPTER XIVCOMMODITY CREDIT
CORPORATION, DEPARTMENT OF
AGRICULTURE
PART 1427COTTON
3. The authority citation for part 1427
continues to read as follows:

Authority: 7 U.S.C. 72317237, 7931
7936, 9011, and 903140, 15 U.S.C. 714b and c.

Subpart CRemoved and Reserved 4. Remove and reserve subpart C, consisting of 1427.100 through 1427.105.

Mae Wu, Deputy Under Secretary, Marketing and Regulatory Programs.
FR Doc. 202120380 Filed 93021; 8:45 am BILLING CODE 341005P

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