USDA Proposes Lower Import Assessment Rate for Cotton and Cotton Products
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Table of Contents
The Agricultural Marketing Service is proposing a change to how much tax importers pay on cotton brought into the United States. Under current rules, importers pay two parts of an assessment: a flat fee based on weight and a supplemental fee tied to the market value of U.S. cotton. This proposal lowers that supplemental fee because the average price farmers received for Upland cotton dropped during the last marketing year.
Why it matters: This matters primarily to textile manufacturers and importers who bring cotton or cotton-containing goods into the country. A lower assessment rate means a slight reduction in compliance costs for these businesses. For domestic producers, it ensures they are not at a competitive disadvantage due to higher taxes on imported goods. The change is administrative but affects the bottom line for anyone subject to the Cotton Research and Promotion Program.
Who it affects
- Importers of raw cotton and cotton-containing products
This proposed rule comes from the Agricultural Marketing Service within the USDA; check the original Federal Register document for full details on calculation methods and effective dates before relying on this summary.
Agency: Agriculture Department, Agricultural Marketing Service
Source: Federal Register — read the official document