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Cotton Fee Increase
July 10, 2009

The Agricultural Marketing Service has issued a final rule, effective August 7, 2009, to amend 7 CFR Part 1205 to increase the value assigned to imported cotton for the supplemental assessments portion of the tax collected on imported cotton and the cotton content of imported products (“imported cotton”).

In addition, AMS is modifying the Harmonized Tariff Schedule numbers that are subject to this assessment.

Imported Cotton Assessment Will Increase by 10.2%

According to AMS, the final rule only affects importers of cotton and cotton-containing products and raises the total assessment paid by the importers under the Cotton Research and Promotion Order.

The assessment on imported cotton will be $0.01088/kg (from $0.009874/kg, an increase of $0.001006/kg). This represents an approximate 10.2% increase in the assessment.

According to AMS, this increase reflects the increase in the Average Weighted Price of Upland Cotton Received by U.S. farmers during the period January - December 2008.

For more details, please email c.spoto@albawheelsup.com and reference “Cotton Fee”.